Operations

Papa Johns Q2 revenue falls 9% as North America sales slump offsets international growth

Photo: Shutterstock

August 6, 2026 by Valerie Gritton

Summarize with

Papa Johns' turnaround efforts continued to face headwinds in the second quarter, as softer consumer demand and an intensely promotional quick-service environment pressured North American sales, the company said during its Q2 earnings call.

The pizza chain posted revenue of $482.4 million, down 8.8% year over year, as global systemwide sales fell 4.8% and comparable sales declined 5.7%.

North America comparable sales dropped 8.3%, offsetting a 1.5% increase in international comp sales, which marked the brand's seventh consecutive quarter of positive international comp growth. Overall, Papa Johns opened 50 restaurants during the quarter, including nine in North America and 41 internationally.

The company has suspended its quarterly dividend, beginning with the third quarter of 2026, to continue investing in its transformation strategy.

During the Q2 earnings call, Papa Johns president and CEO Todd Penegor said that while the company has explored a potential sale, as of now, its best strategy moving forward to to continue with its transformation strategy.

"We have been well-advised in these efforts, supported by our financial and legal advisors. This work has made clear that, for Papa Johns, the value creation opportunity that is actionable is the execution of our transformation plan," he said during the call. "Of course, the board remains open to other alternatives to maximize value; however, these options need to be actionable, provide certainty and serve the best interest of our shareholders."

The chain's North American challenges were attributed to a "softer consumer environment, lower order volumes, and a highly promotional QSR marketplace," Penegor said in the company's earnings press release.

"While our transformation is taking longer than anticipated, we continue to execute our strategy with discipline and focus and are seeing encouraging progress, including a growing and highly engaged Papa Rewards membership, supply chain savings, and AI-driven improvements to the customer ordering experience," Penegor said. "By accelerating investments to strengthen our competitive position, improve restaurant economics, and attract new customers, we can build an even stronger foundation to gain market share and drive sustainable long-term growth."

Q2 highlights include:

Revenue: $482.4 million, down 8.8% year over year from $529.2 million
Global systemwide sales: $1.20 billion, down 4.8% year over year
Comparable sales: Down 5.7% globally, including an 8.3% decline in North America
International comparable sales increased 1.5%
Net income: $8.7 million, compared with $9.7 million a year earlier