Papa John's Q2 Earnings Fall Short, Revenue Rises 4.2%

Papa John's International Inc reported a 23% drop in Q2 profit, with earnings falling to $9.67 million, or $0.28 per share, compared to $12.53 million, or $0.37 per share last year. Revenue rose 4.2% to $529.16 million. Excluding items, adjusted earnings were $13.52 million, or $0.41 per share.

Papa John's International Inc. (PZZA) reported its second-quarter 2025 earnings, revealing a 23% drop in profit compared to the same period last year. The company reported earnings of $9.67 million, or $0.28 per share, down from $12.53 million, or $0.37 per share in Q2 2024 [1]. Despite the decline in earnings, revenue rose 4.2% to $529.16 million, exceeding analyst expectations. Adjusted earnings, excluding one-time gains and costs, were $13.52 million, or $0.41 per share [2].

The company's North America comparable sales increased by 1%, while international comparable sales grew by 4%. This growth was driven by a focus on the core pizza business and higher transaction gains. The company opened 45 new restaurants system-wide, with 19 in North America and 26 internationally [2].

However, the company's net income was $9.7 million, a $2.9 million decrease compared to the prior year. This decline was primarily due to higher general and administrative (G&A) expenses related to incremental investments in marketing and the loyalty program, as well as higher incentive compensation and cost of sales. Additionally, the company reported a $6.3 million decrease in adjusted EBITDA compared to the prior year [2].

The company's CEO, Todd Penegor, commented on the results, stating, "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 win more customer visits with a focus on our core pizza business." [2]

Looking ahead, the company is raising its 2025 outlook for international comparable sales, expecting growth of 2% to 4% compared to its previous guidance of flat to up 2% [2].

References:
[1] https://finance.yahoo.com/news/papa-johns-q2-earnings-snapshot-112539678.html
[2] https://www.businesswire.com/news/home/20250807904086/en/Papa-Johns-Announces-Second-Quarter-2025-Financial-Results