Papa John’s is set to close hundreds of underperforming restaurants as it moves to cut costs.
The pizza chain will shutter 300 locations by the end of 2027, including 200 that will close this year, Chief Financial Officer Ravi Thanawala announced in a fourth quarter earnings call Thursday.
Thanawala said Papa John’s will close restaurants “not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” per CNN.
Papa John’s was founded in 1984 in Jeffersonville, Indiana, and now has roughly 6,000 restaurants in about 50 countries and territories. It has around 3,500 U.S. locations.
It’s unclear which locations will close their doors. The Independent has reached out to Papa John’s for comment.
Sales for Papa John’s U.S. locations were down 3 percent and total revenues, $2.1 billion, were flat last year compared to 2024. Looking at the pizza chain’s fourth quarter earnings, U.S. restaurant sales and total revenues, $498 million, were both down 6 percent year over year.
Thanawala also announced Thursday Papa John’s was cutting about 7 percent of its corporate workforce. The company said it had about 700 corporate workers as of December 2024.
Despite the lackluster earnings, Papa John’s opened 279 new restaurants in the 2025 fiscal year, including 96 locations in North America and 183 locations abroad.
“In the fourth quarter, solid execution drove the company’s fifth consecutive quarter of positive comparable sales in our International markets, while North America results reflected a weak consumer backdrop and elevated promotional environment,” CEO Todd Penegor said in a statement.
“In 2026, we are focused on continuing our transformation work to best position Papa Johns to win in a dynamic QSR [quick service restaurant] category,” Penegor continued.
