Papa John’s International (PZZA) Q2 2026 earnings summary

Executive summary

• Transformation plan remains the primary focus, with management changes and workforce reductions to accelerate progress; a potential sale is not being pursued at this time.

• Revenues for Q2 2026 declined 8.8% year-over-year to $482.4 million, with net income down to $8.1 million; global system-wide restaurant sales fell 4.8% to $1.20 billion.

• International segment showed resilience, with positive comparable sales growth and increased EBITDA, offsetting North America softness.

• Portfolio optimization and strategic closures underway, with 101 North American restaurants closed and further closures planned.

• Dividend suspended beginning Q3 2026 to prioritize transformation and growth investments.

Financial highlights

• Total consolidated revenue for Q2 2026 was $482.4 million, down 8.8% year-over-year, mainly due to lower North America sales and refranchising.

• Net income for Q2 2026 was $8.1 million, down from $9.3 million in Q2 2025; diluted EPS was $0.24, adjusted diluted EPS rose to $0.46.

• Consolidated adjusted EBITDA was $53 million, flat year-over-year due to cost management and international performance.

• Free cash flow for the first half of 2026 was $9.5 million, down from $36.5 million last year, reflecting lower net income and increased transformation investments.

• Operating income for Q2 2026 was $23.2 million, down from $24.5 million in Q2 2025.

Outlook and guidance

• 2026 global system-wide sales expected to decline 2%-4% year-over-year; North America comparable sales projected to be down 6%-8%, International up 1%-3%.

• Adjusted EBITDA guidance for 2026 is $180-$190 million, including $35 million in supplemental marketing and franchisee subsidies.

• Capital expenditures for 2026 expected between $70-$80 million.

• 2026 North America restaurant closures now expected to be 200-250, up from prior guidance.

• Total restructuring charges of $24–31 million expected under the transformation plan through 2027.