Papa Johns North America sales slump as international growth fails to offset domestic decline

Papa John’s International (NASDAQ:PZZA) faced a challenging start to 2026, with a pronounced downturn in its domestic market offsetting gains made abroad.

The Louisville-based pizza chain reported global system-wide restaurant sales of $1.20 billion for the first quarter ended March 29, 2026, representing a 3% decrease compared to the prior-year period.

The performance highlight was a sharp divergence between geographic regions.

North America comparable sales fell 6.4%, driven by a 5.2% decline at domestic company-owned restaurants and a 6.7% drop at franchised locations.

Conversely, international comparable sales provided a bright spot, increasing by 3.6% as the brand continues to gain traction in overseas markets.

Profitability metrics also reflected the domestic headwinds.

Net income for the quarter was $7 million, down from $9 million in the first quarter of 2025.

Adjusted EBITDA was $48 million, compared to $50 million a year ago.

Diluted earnings per share (EPS) stood at $0.21, while adjusted diluted EPS reached $0.32, falling short of the $0.36 recorded in the prior-year quarter.

Despite the sales pressure, Papa Johns continued to expand its physical footprint, opening 28 new restaurants system-wide during the quarter.

The expansion was heavily weighted toward global growth, with 20 new units appearing in international markets compared to 8 new openings in North America.