Papa John’s International (PZZA) investor relations material

Executive summary

• Q2 revenues increased 4% to $529 million, with global system-wide sales up 4% to $1.26 billion and North America comparable sales up 1%, international up 4%.

• Net income for Q2 was $9.3–$9.7 million, down year-over-year; adjusted EBITDA was $52.6–$53 million, reflecting higher costs and investments.

• Strategic focus on product innovation, marketing, technology, customer experience, and franchisee partnership, with digital and loyalty initiatives driving engagement.

• Enhanced loyalty program added 2.7 million new accounts since November, boosting order frequency and engagement.

• Sale of a 70% stake in a joint venture operating 85 restaurants for ~$25 million expected to close by year-end, with proceeds for strategic initiatives and debt reduction.

Financial highlights

• Q2 2025 total revenues: $529.2 million (+4.2% YoY); global system-wide sales: $1.26 billion (+4% YoY).

• Net income for Q2: $9.3–$9.7 million; adjusted EBITDA: $52.6–$53 million, both down year-over-year.

• Free cash flow for the first six months: $36.5–$37 million, up sharply from prior year.

• No share repurchases in Q2; $90.2 million remains authorized under the program.

• North America commissary segment adjusted EBITDA margin improved 130 basis points to 7.3% in Q2.

Outlook and guidance

• 2025 system-wide sales expected to grow 2%–5%; international comparable sales guidance raised to 2%–4%, North America comps flat to up 2%.

• Adjusted EBITDA guidance for 2025: $200–$220 million.

• CapEx for 2025 projected at $75–$85 million, including $8–$13 million for tornado-related rebuilds.

• Additional $25 million in marketing investments planned for 2025.

• Q3 North America comps down ~1% so far, but sequential improvement expected with new product launches and value messaging.