Investors who acquired Papa Johns shares during the proposed class period have until Nov. 2, 2026, to seek the lead role in a securities lawsuit challenging the pizza chain’s turnaround disclosures, Levi & Korsinsky said.
DJS Law Group renewed attention to the deadline in an Oct. 20 notice. Investors who do not apply to lead the case may still be eligible for a share of any eventual recovery, Levi & Korsinsky said.
Papa Johns reported that North American comparable sales fell 8.3% from a year earlier in the quarter ended June 28, 2026. In its Aug. 6 earnings release filed with the SEC, the company revised its fiscal 2026 forecast for those sales to a decline of 6% to 8%, compared with its previous projection of 2% to 4%. It also reduced its adjusted EBITDA outlook to $180 million to $190 million from $200 million to $210 million.
The company pointed to fewer orders, softer consumer demand and intense promotion among quick-service restaurants. Papa Johns CEO Todd Allan Penegor said in the release that the transformation was “taking longer than anticipated.”
Papa Johns suspended its quarterly dividend beginning in third-quarter 2026, saying the decision would give it more flexibility to invest in its transformation. Shareholders forgo the payment while the company directs capital toward initiatives that include franchise incentives and technology.
Levi & Korsinsky said the complaint alleges that investors received a misleading account of the turnaround and Papa Johns’ ability to regain market share. The firm identifies Aug. 7, 2025, through Aug. 5, 2026, as the proposed class period. Those claims have not been established in court.
William Hale filed the previously reported lawsuit on Sept. 2, 2026, in the U.S. District Court for the Western District of Kentucky. The docket lists Papa Johns, Penegor and Ravi Thanawala as defendants.
Papa Johns plans to release third-quarter results before the U.S. market opens Nov. 5, 2026, followed by a conference call at 8 a.m. ET.
