US pizza chain Papa John’s International will close around 300 underperforming restaurants across North America this year and next after reporting a sharp drop in annual profit and continued softness in its core US market.
The Louisville-headquartered brand said approximately 200 locations will close by the end of this year, with the remaining locations to follow next year, as it redirects investment into stronger-performing markets.
The announcement came alongside the group’s fourth-quarter and full-year 2025 results, which revealed flat revenue and significantly lower earnings.
Full-year revenue held steady at about $2.1 billion, while net income fell to $32 million from $84 million the prior year.
System-wide sales increased 1 per cent to $4.9 billion globally, supported by international growth. However, comparable sales in North America declined 2 per cent for the year, highlighting persistent headwinds in the company’s largest market.
Trading deteriorated further in the fourth quarter. North America comparable sales dropped 5 per cent, contributing to a 6 per cent fall in quarterly revenue to $498 million. Net income for the quarter totalled $9 million.
“We are encouraged by the progress we are making in our transformation as we further reinforce our brand health, sharpen our value proposition, build our innovation pipeline and enhance the customer experience,” said Todd Penegor, president and CEO.
“These actions, alongside recent changes to our organizational structure to drive efficiencies, provide a strong foundation for our future.”
Despite domestic weakness, the group continued to expand internationally, opening 279 restaurants in FY25, primarily outside North America. International comparable sales rose 5 per cent for the year, underscoring the growing importance of overseas markets to the brand’s growth strategy.
In August, the US pizza chain announced plans to return to India by October, aiming to open 650 stores over the next decade, in a market where fast-food chains have been struggling to sustain sales growth.
