Key Highlights

  • Papa Johns shares fell 7.90% pre-market today to $18.41, from a prior close of $19.99.
  • North America comparable sales fell 8.3%, with franchised restaurants down 8.5%.
  • Adjusted EPS of $0.16 compared with $0.32 a year earlier, and Revenue fell 10.5% to $454.8 million.
  • Adjusted EBITDA guidance was cut to about $175 million from $180 million to $190 million.
  • The Unbox Better plan adds a Marketing framework built on greater local Franchisee investment.

Papa Johns (NASDAQ:PZZA) shares fell in pre-market activity today after third-quarter results showed deeper sales declines in North America and the company lowered its 2026 profit outlook. The stock changed hands at $18.41, down 7.90% from Wednesday's close of $19.99, which followed a 7.70% gain in the regular session. The 52-week range runs from $17.70 to $48.83.

Papa Johns runs and franchises about 6,000 pizza restaurants in roughly 50 countries and territories. Its market Capitalization is about $658 million and its Dividend Yield is 9.20%.

What Went Wrong in North America?

North America comparable sales fell 8.3%, with U.S. company-owned restaurants down 7.5% and franchised restaurants down 8.5%. International comparable sales fell 1.8%. Global system-wide sales were $1.15 billion, down 5.6%.

Revenue fell $53.3 million, or 10.5%, to $454.8 million, mostly from refranchising 113 restaurants and the lower comparable sales. Commissary revenue fell $15 million on lower volumes.

How Far Did Earnings Fall?

Net income was $3.3 million, or $0.09 per diluted share, against $4.5 million and $0.13 a year earlier. Adjusted EPS was $0.16 versus $0.32, narrowly ahead of a roughly $0.15 consensus. Adjusted EBITDA fell to $38.1 million from $47.8 million.

Free Cash Flow for the nine months was $19.2 million, down from $59.2 million, with long-term Debt of $700.1 million against $26.8 million of cash at quarter-end.

How Did the Outlook Change?

Papa Johns now expects global system-wide sales down about 5%, versus a prior range of down 2% to 4%, and North America comparable sales down about 8%. International comparable sales are guided flat to up 1%, from up 1% to 3%.

Adjusted EBITDA guidance fell to about $175 million from $180 million to $190 million. Opening targets of 40 to 50 in North America and 180 to 220 internationally were unchanged.

Can Unbox Better Reset the Brand and the Franchise System?

The Unbox Better plan rests on two priorities: giving customers stronger reasons to choose the brand and helping the system deliver consistently. A new marketing framework leans on increased local market franchisee Investment alongside national campaigns, paired with product and operations changes. The plan reduces franchisee fees and commissary markups, though the move adds only about a penny to adjusted EPS. The stock trades far below its 52-week high of $48.83, so the fourth-quarter comparable sales trend will be the first test of the plan.