Papa John’s International (PZZA) UBS Global Consumer and Retail Conference summary

Brand strategy and innovation

• Focus on brand health, value positioning, and innovation pipeline to attract new and lapsed customers, including the launch of Pan Pizza and operational improvements like oven calibration.

• Menu simplification by removing low-performing, complex items (Papadias, Papa Bites) and introducing affordable sides and sandwiches to streamline operations and drive repeat business.

• Emphasis on quality messaging and evolving to resemble local pizzerias at affordable price points, while maintaining operational efficiency.

• Enhanced loyalty program with doubled redemptions and higher frequency among members, supported by targeted CRM and digital engagement.

• Steady innovation and attractive price points are key levers for recruiting new customers, especially through third-party aggregators and value-focused menu items.

Marketing and customer engagement

• Increased marketing investment, with $22 million planned for the year, supporting both national and local co-op advertising to drive unified messaging and customer acquisition.

• Local co-ops now represent about half of U.S. system sales, enhancing local marketing effectiveness and complementing national campaigns.

• Marketing strategy includes a mix of linear and digital channels, with a focus on reaching the next generation of consumers and leveraging partnerships.

• Loyalty program membership has grown to 41 million, with ongoing efforts to gamify and personalize the experience to boost engagement and frequency.

• Technology upgrades, including a new POS system and Google Cloud partnership, aim to improve ordering experience, drive demand, and enhance four-wall profitability.

Operational and financial performance

• Ongoing re-franchising efforts and targeted closures of underperforming stores, especially in the west and southwest, to optimize the fleet and improve four-wall margins.

• Top 50% of stores achieve $1.4 million AUV and 12% EBITDA margin; closures focus on the bottom quartile to strengthen overall system performance.

• Supply chain optimization and G&A savings initiatives are expected to deliver $60 million+ in savings by 2028, supporting margin enhancement and reinvestment.

• 2026 is expected to be a year of operational focus, with gross U.S. openings of 40-50 and international 180-220, while preparing for future growth.

• Franchisee sentiment is mixed but improving, with long-term incentives and joint capital planning to support transformation and growth.