Papa Johns is the most recent pizza chain to shutter hundreds of locations following a difficult quarter as patrons tighten their spending.
During its earnings call on Thursday, the company disclosed plans to close roughly 300 underperforming North American restaurants by the conclusion of 2027, with about 200 of those closings slated for the current year.
The affected establishments are those “that are not meeting the brand’s expectations or lack a clear path to sustainable financial improvement, and where we don’t have nearby locations to effectively shift sales to the closest restaurant,” stated Ravi Thanawala, Papa Johns’ CFO and President of North American Operations.
A specific roster of these sites has not been publicized. As per the annual report, Papa Johns operated approximately 3,500 locations at the close of 2025.
In addition to the venue reductions, the firm executed layoffs impacting around 7% of its approximate 700 corporate staff members.
These closures follow a challenging fourth quarter for the chain, which posted a 5.4% decrease in comparable North American sales. CEO Todd Penegor commented in a statement that the figures “reflect a soft consumer backdrop and a more promotional environment.”
Penegor is actively seeking to implement an overhaul for Papa Johns, centering efforts primarily on the menu. He has recalibrated restaurant ovens for superior baking results and is enhancing the product lineup, recently introducing a new pan pizza offering.
Rival Pizza Hut announced earlier this month its intention to shutter approximately 250 locations during the first half of this year. Yum! Brands, its parent company, is undertaking a strategic reassessment of the remaining vulnerable brand.
Domino’s Pizza stands out as a clear victor among fast-food chains. Earlier this week, the chain reported a 3.7% increase in same-store sales for the fourth quarter, bolstered by appealing value propositions and a new marketing campaign.
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