Papa John's Targets 2026 Recovery with Innovation Push

Papa John's is actively pursuing a strategic transformation aimed at achieving recovery by 2026, with a strong emphasis on cost reduction and menu innovation. The company has announced plans to close roughly 200 underperforming restaurants across North America in 2026, as part of a broader effort to optimize its store portfolio and improve profitability. Significant supply chain cost savings, targeting at least $60 million, are also a key component of this plan.

New product introductions, notably the recently launched pan pizza, are demonstrating promising early results, contributing to increased customer interest and sales mix. International markets are showing positive comparable sales growth, supported by digital enhancements and loyalty program engagement. The company's strategy also includes expanding its market reach and elevating its product offerings beyond traditional pizza.

Despite projected near-term comparable sales contractions in North America for 2026, Papa John's is investing in marketing and technology. Initiatives include a revamped loyalty program, digital app enhancements, and strategic partnerships. The company is navigating macroeconomic challenges by balancing investments in growth drivers with persistent headwinds in domestic order acquisition and sales quality.