Papa John’s International (PZZA) Q3 2026 earnings summary

Executive summary

• Unbox Better targets brand strength and the operating system through product, value, loyalty, restaurant execution, technology and local marketing; the franchisee marketing framework received 98% of votes cast.

• Q3 system-wide sales and top-line results declined amid North America pressure; value discipline, operating execution and cost management supported positive free cash flow.

Financial highlights

• Q3 revenue was $454.8M, down 10.5% YoY; global system-wide restaurant sales were $1.15B, down 5.6% in constant currency.

• Adjusted EBITDA was $38.1M vs. $47.8M; adjusted diluted EPS was $0.16 vs. $0.32. Net income was $3.3M vs. $4.5M and diluted EPS was $0.09 vs. $0.13.

• 9M revenue was $1.416B vs. $1.556B; adjusted EBITDA was $138.6M vs. $150.0M, net income was $18.9M vs. $23.5M, and diluted EPS was $0.55 vs. $0.69.

• Q3 operating income was $14.2M vs. $16.2M; adjusted EBITDA declined mainly on lower North America sales and volumes, partly offset by lower cost of sales.

Outlook and guidance

• FY26 outlook: global system-wide sales down ~5%, North America comps down ~8%, International comps flat to up 1%, and adjusted EBITDA ~$175M, excluding ~$16M of stock-based compensation.

• FY26 gross openings: 40–50 in North America and 180–220 internationally; planned closures: 200–250 in North America and 5%–6% of the International system.

• FY26 capex is $70M–$80M; guidance includes ~$35M of supplemental marketing and franchise investment, ~$13M of G&A savings excluding marketing, and net interest of $35M–$40M.

• Q4 comps, revenue and EBITDA trends are expected to be similar to Q3; guidance assumes no consumer or macro improvement and excludes Unbox Better benefits.

• Approximately $30M of G&A savings, excluding marketing, are planned across FY2026–27; supply-chain savings targets are at least $25M by year-end 2026 and $60M by year-end 2028.