Papa John’s International (PZZA) Q4 2025 earnings summary

Executive summary

• 2025 marked a transformational year with improvements in brand health, technology, innovation, customer experience, restaurant fleet, and cost structure.

• Global system-wide restaurant sales grew 1% year-over-year to $4.92 billion in 2025, but Q4 sales declined 1% compared to the prior year quarter.

• North America comparable sales fell 2% for the year, while international comparable sales rose 5%.

• 279 new restaurants opened in 2025, with international markets accounting for 183 of these.

• Net income for 2025 was $32 million, down from $84 million in 2024; adjusted EBITDA was $201 million, down from $227 million.

Financial highlights

• Total revenues for 2025 were $2.1 billion, flat year-over-year; Q4 revenues were $498 million, down 6%.

• 2025 global system-wide restaurant sales were $1.23 billion in Q4, down 1% in constant currency.

• North America comparable sales decreased 5% in Q4, while international comparable sales grew 6%.

• Diluted EPS for 2025 was $0.90 (vs. $2.54 in 2024); adjusted diluted EPS was $1.43 (vs. $2.34).

• Free cash flow for 2025 was $61.3 million, up from $34.1 million in 2024, driven by favorable working capital changes and lower capex.

Outlook and guidance

• 2026 guidance: global system-wide sales expected to be flat to down low single digits; North America comparable sales down 2–4%, international up 2–4%.

• 2026 consolidated adjusted EBITDA guidance is $200-$210 million.

• 200 North America restaurant closures planned in 2026, with 100 more in 2027.

• 40–50 North America and 180–220 international gross openings targeted for 2026.

• $22 million in supplemental marketing and franchisee subsidies to be invested in 2026.