Papa John’s International (PZZA) investor relations material

Executive summary

• Global system-wide restaurant sales grew 2% year-over-year to $1.21 billion, driven by strong international performance and net restaurant openings, offsetting North America softness.

• North America comparable sales declined 2.7%–3% due to weaker consumer sentiment and a more promotional QSR environment, while international comparable sales rose 7%–7.1% with notable strength in Europe, Middle East, Asia-Pacific, and the UK.

• Net income dropped to $4.5 million from $41.8 million, mainly due to a prior-year gain from property sales and higher expenses.

• Transformation strategy focuses on cost efficiency, innovation, refranchising, and technology investments to drive long-term growth.

• 45 new restaurants opened system-wide in the quarter, with international markets leading growth.

Financial highlights

• Total consolidated revenue was flat at $508.2 million, as international gains offset North America declines.

• Adjusted EBITDA was $47.8 million, down $2.2 million year-over-year, impacted by higher G&A and marketing costs.

• Free cash flow for the first nine months was $59.2 million, up from $9.0 million year-over-year.

• North American commissary segment Adjusted EBITDA margin improved 100 bps to 7.4% due to higher pizza volumes.

• General and administrative expenses surged 338% in Q3 due to higher marketing spend and incentive compensation.

Outlook and guidance

• 2025 global system-wide sales expected to increase 1%–2%.

• North America comparable sales projected down 2%–2.5%; international comparable sales outlook raised to 5%–6%.

• 2025 consolidated Adjusted EBITDA expected between $190 million–$200 million.

• Capital expenditures forecasted at $75–$85 million, including $10–$13 million for tornado-related rebuilding; effective tax rate 27%–30%.

• At least $50 million in supply chain savings and $25 million in expense reductions targeted for 2026–2027.