Papa John's (PZZA) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 26, 2026 astatine 8:40 AM CST 40 min read

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Papa John's (NASDAQ:PZZA) reported its latest quarterly results and strategical updates arsenic follows:

Thursday, Feb. 26, 2026 astatine 8 a.m. ET

• Chief Executive Officer — Todd Penegor

• Chief Financial Officer and President, North America — Ravi Thanawala

Todd Penegor: We person substantially improved our marque health, lawsuit experience, edifice fleet, and outgo structure. To our marque health, exertion platform, innovation pipeline, unneurotic with cardinal enactment appointments and organizational changes, arsenic good arsenic our worth and prime cognition with our customers, we achieved growth, and higher utilization amongst our loyalty members, oregon our astir invaluable customers, expanding loyalty orders redeeming Papa Do from 24% past twelvemonth to 48% astatine the 2025. Our planetary business, we person delivered 5 consecutive quarters of affirmative income comps. We person made advancement against our exertion roadmap with the extremity of establishing Papa John's International, Inc. arsenic a best-in-class exertion person successful QSR.

We established a program to present astatine slightest $60,000,000 of system-wide proviso concatenation outgo savings to our institution and franchise restaurants without compromising the lawsuit experience. We identified astatine slightest $25,000,000 of non-customer-facing firm outgo savings to beryllium realized done 2027. And we ended the twelvemonth gathering oregon exceeding our updated guidance targets, portion investing $21,000,000 successful supplemental selling twelvemonth implicit twelvemonth to enactment our worth proposition. These actions statesman to instrumentality hold. And near-term show is mixed arsenic our translation initiatives proceed to summation traction. Still, our advancement is conscionable beginning.

As we enactment to physique connected this momentum, I americium adjacent much assured that Papa John's International, Inc. is good positioned for meaningful medium- and semipermanent maturation and worth instauration than I was astatine this clip past year. For example, from a user lens, successful the 4th quarter, we saw spot successful our loyalty customers and existing customers successful North America. However, caller lawsuit acquisition was little than past year. From a merchandise perspective, halfway pizza remains resilient, with the full fig of pizzas sold really expanding 1%. On the different hand, azygous pastry orders declined during the quarter, and full pizza income declined debased azygous digits arsenic our bid premix shifted towards smaller, non-specialty pizzas.

From a geographic perspective, we delivered beardown 6% comparable income maturation internationally, driven by spot crossed cardinal markets successful the Middle East, Asia Pacific, and Europe. Performance highlights see 7% comp income maturation successful the UK, arsenic the marketplace benefited from our translation work. As for fulfillment channels, successful North America, we were pleased that our carryout concern returned to debased single-digit bid maturation supported by the 50% carryout connection successful November. There was besides notable spot successful Uber Eats performance. This upside was offset by year-over-year bid declines successful full delivery. As we look to 2026, we are positioning the concern to triumph successful a class that has staying powerfulness and maturation opportunities.