Papa Johns announces 300 store closures and 7% corporate layoffs

Core Insights - Papa Johns has announced a series of cost-saving measures and financial improvements for 2026 and beyond, including the closure of 300 underperforming stores by 2027, with 200 closures planned for this year, and a 7% reduction in corporate workforce [1][2][4] Cost-Saving Measures - The company aims to achieve at least $25 million in cost savings outside of marketing through 2027, with approximately $13 million expected to be realized in 2026 [3] - A comprehensive review of non-customer facing costs and corporate resources has been conducted to enhance flexibility and support long-term growth [3] Store Performance and Strategy - Papa Johns reported a 2% decline in North America same-store sales, attributed to underperformance in company-owned stores, while international same-store sales increased by 5% [3] - The company plans to accelerate its refranchising program, targeting a reduction of company-owned stores to mid-single digit percentages of its total portfolio [3][4] Restaurant Portfolio Optimization - Approximately 300 underperforming restaurants have been identified for closure, primarily franchise-owned, over a decade old, and generating average unit volumes (AUVs) of under $600,000 [4] - The long-term goal includes improving franchisee profitability and focusing on international growth, with plans to open 180 to 220 new restaurants across all markets in 2026 [4] Menu Simplification - In addition to cost-saving measures, the company is simplifying its menu by phasing out the Papadias and Papa Bites platforms [5] - This menu revision is expected to create near-term pressure on 2026 North America comparable sales but is anticipated to benefit the brand in the long run as operations improve and sales of core products grow [6]