Papa John's will close 300 underperforming locations by the end of 2027, including 200 this year, due to declining sales.

Papa John's has announced that it will close 300 underperforming restaurants by the end of 2027, with 200 locations set to close this year, according to CFO Ravi Thanawala. The decision comes as part of a cost-cutting strategy, considering that sales at U.S. locations fell by 3% last year, and total revenues remained stagnant at $2.1 billion. Additionally, Papa John's will reduce approximately 7% of its corporate workforce, which numbered about 700 employees in December 2024. Although financial results have not been promising, the company opened 279 new restaurants in fiscal year 2025. CEO Todd Penegor emphasized that, despite challenges in the North American market, the company is focused on transforming itself to adapt to a competitive environment in the fast-food restaurant sector.