Popular pizza chain sells 85 locations in surprising business move

Core Insights - The U.S. has significantly influenced the pizza industry, creating iconic regional styles and becoming home to the largest pizza chains globally [1] - Papa Johns has faced declining comparable sales in North America, with a 3% year-over-year drop in Q3 2025, indicating a challenging market environment [2][3] - The company is undergoing a refranchising strategy to enhance profitability and adapt its business model, aiming to reduce company-owned locations to a mid-single-digit percentage of its nearly 6,000 global locations [7][8] Company Developments - Papa Johns sold 85 restaurants in Washington, D.C., and Baltimore to Pie Investments Management, which now operates over 150 locations and plans to expand to 250 by 2030 [4][5] - The previous ownership of these restaurants was a joint venture, and the sale marks a significant shift in Papa Johns' restaurant portfolio [5] - The new franchisee, Chris Patel, is recognized for his successful track record in restaurant acquisitions and profitability improvements [6] Strategic Initiatives - The refranchising initiative is part of a broader strategy to drive profitable growth and expand into high-demand markets [7][8] - Over the next two years, the company plans to accelerate its refranchising efforts to improve its long-term economic model [8]