How did Papa John’s (NASDAQ:PZZA) perform in Q1 2026?

Papa John’s reported Q1 2026 global system-wide restaurant sales of $1.20 billion, a 3% decrease from the prior year. The company faced challenges in North America, with comparable sales falling 6.4%, while international markets saw a 3.6% increase in comparable sales. Net income was $7 million, a decline from $9 million in Q1 2025, and adjusted EBITDA dropped to $48 million from $50 million last year.

How did Papa John’s international markets perform in Q1 2026?

Papa John’s international markets performed well in Q1 2026, with comparable sales increasing by 3.6%. This growth reflects the brand’s continued success in overseas markets, which helped offset the challenges faced in the North American market. The company continues to gain traction internationally, and this is becoming an increasingly important driver of growth.

What impact did domestic performance have on Papa John’s profitability in Q1 2026?

Papa John’s domestic performance weighed heavily on its profitability in Q1 2026. The decline in North American comparable sales led to a drop in net income to $7 million, down from $9 million in Q1 2025. Adjusted EBITDA also decreased to $48 million, reflecting the pressures from the domestic market despite growth in international operations.

How did Papa John’s expand its physical footprint in Q1 2026?

Papa John’s continued to expand its physical footprint in Q1 2026, opening 28 new restaurants system-wide. Of these, 20 were in international markets, highlighting the company’s focus on global growth. Only 8 new units were opened in North America, underscoring the brand’s strategy to prioritize international expansion in response to domestic challenges.

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

Written by Isaac FrancisPublished May 7, 2026, 11:53 AMLast Updated Jul 6, 2026, 10:28 AM

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.