Papa John’s Q2 revenues rise 4% to $529m

Papa John’s has reported that group revenues rose 4% to $529m (£393m) in the second quarter to 29 June, mainly driven by higher commissary sales. 

This comes despite a year-on-year drop in revenues caused by the closure and refranchising of more than 100 restaurants in 2024. 

Revenues from company-owned international outlets fell by $8.2m (£6m) in the second quarter compared with the prior year, largely due to the transfer or closure of UK stores. 

However, growth in franchised outlets and stronger performance in other overseas markets offset some of the decline.

In North America, comparable sales increased 1%, marking a return to growth. Domestic company-owned outlets were flat, while franchised restaurants were up 1%, taking total North America system-wide sales 3% higher to $928m (£689m).

Net income fell to $9.7m (£7.2m) from $12.6m (£9.3m) a year earlier, reflecting increased marketing spend, loyalty programme investment and higher incentive pay. Likewise, adjusted EBITDA dropped to $52.6m (£39m) from $58.9m (£43m).

Todd Penegor, president and chief executive of Papa John’s, said: “Papa John’s second quarter results exceeded our expectations and are evidence that our strategy is working. 

“We returned to comparable sales growth in North America and achieved strong sales growth internationally, driven by transaction gains as we won more customer visits with a focus on our core pizza business.”

The company opened 45 restaurants during the quarter – 19 in North America and 26 internationally – and maintained its 2025 guidance, raising its forecast for international comparable sales to between 2% and 4%.