Papa John's International Inc. reduced its 2026 outlook after North America comparable sales fell 8.3% in the third quarter, extending pressure on the pizza chain's results.
The company reported $1.15 billion in global system-wide restaurant sales for the quarter ended Sept. 27, down 5.6% from a year earlier excluding foreign-currency effects. Revenue fell 10.5% to $454.8 million. Net income was $3.3 million, compared with $4.5 million a year earlier, while adjusted EBITDA, a non-GAAP measure, declined to $38.1 million from $47.8 million. The comparable-sales figures also exclude foreign-currency effects.
Papa Johns now expects global system-wide restaurant sales to decline about 5% in 2026, compared with its previous forecast for a 2% to 4% decline. It projects North America comparable sales will fall about 8%, versus an earlier range of 6% to 8%. For international comparable sales, it expects results to be flat to up 1%, down from a previous forecast of 1% to 3% growth. The company cut its adjusted EBITDA forecast to about $175 million from $180 million to $190 million. It had already lowered its annual projections after its second-quarter results.
Revenue comparisons reflect the transfer of 113 domestic company-operated restaurants to franchise ownership after the third quarter of 2025. Papa Johns estimated those transfers meant about $26 million in revenue was no longer recorded as company revenue. Domestic comparable sales fell 7.5%. The company also cited a lower global net restaurant count over the trailing 12 months and a competitive operating environment.
The company introduced its Unbox Better plan, which combines product and operational changes with a marketing framework that calls for greater local marketing investment by franchisees. Papa Johns described customers, franchisees and shareholders as intended beneficiaries of the plan, while franchisees are responsible for the additional local marketing investment.
