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Papa John’s shares slump after Q2 revenue and profits decline
The company also suspended its dividend, cut EBITDA guidance to a midpoint of $185 million, and plans to close 200 to 250 stores in 2026.
Papa John’s International Inc. shares fell sharply after the pizza chain reported second-quarter results, which showed revenue and system-wide restaurant sales declines. According to Yahoo Finance, the stock was down 49% over the past year and 39% year-to-date, and it closed 17.8% lower on the day of the earnings release.
In the quarter, Papa John’s reported second-quarter revenue that dipped 8.8%, with system-wide restaurant sales down 4.8%. Net income fell by $1 million to $8.7 million, while adjusted earnings per share rose to 46 cents from 41 cents, helped by improved gross, operating, and net profit margins.
The company also took additional steps that weighed on the outlook, including suspending its dividend and cutting EBITDA guidance to a midpoint of $185 million from $200 million. Yahoo Finance added that Papa John’s said it would close between 200 and 250 North American stores in 2026.
The report compared Papa John’s performance with Domino’s Pizza Inc., noting that Domino’s shares had been down 23% over the past year and 18% year-to-date. Yahoo Finance said Domino’s second-quarter revenue of $1.19 billion rose 4.3%, but its earnings missed analyst estimates and U.S. same-store sales grew 0.1%.