PAPA Johns International 2025 Q2 Earnings Misses Expectations as Net Income Dips 23%

PAPA John's International reported its Q2 2025 earnings on August 7, 2025, showing results that fell below expectations. While revenue rose slightly, earnings declined significantly. The company raised its international comparable sales guidance, reflecting optimism around global performance.

Revenue
PAPA John's International posted total revenue of $461.87 million for the second quarter of 2025, a 3.7% increase compared to $445.51 million in the same period of 2024. This modest top-line growth suggests stability in the business, though no segment-specific revenue breakdown was provided in the report.

Earnings/Net Income
The company’s earnings per share (EPS) dropped 24.3% year-over-year to $0.28 from $0.37, while net income fell to $9.67 million, representing a 22.9% decline from $12.54 million in the prior-year quarter. These results indicate a challenging earnings environment despite the revenue increase.

Price Action
Shares of PAPA John's International experienced mixed performance in the short term, with a 1.73% gain during the latest trading day and a 3.75% rise over the past week, though the stock was down 8.92% month-to-date.

Post-Earnings Price Action Review
A backtested strategy involving the purchase of PZZA shares following the earnings release, based on a revenue decline quarter-over-quarter, proved highly unsuccessful. Holding for 30 days led to a negative compound annual growth rate of -20.11%, an excess return of -97.05%, and a Sharpe ratio of -0.50, underscoring the high volatility and risk associated with this investment approach during the test period.

CEO Commentary
Todd Penegor, President and CEO, stated that the second quarter results exceeded expectations, highlighted by a return of comparable sales growth in North America and robust international performance driven by higher transaction volumes. He emphasized continued progress in the core pizza business and confidence in the company's ability to achieve sustainable, profitable growth.

Guidance
The company raised its fiscal 2025 international comparable sales guidance to a range of 2% to 4%, indicating stronger-than-expected international performance. This update signals continued strategic focus on global expansion, marketing, and loyalty programs.

Additional News
On August 7, 2025, PAPA John's International announced an upward revision to its international sales guidance for fiscal 2025, setting a new range of 2% to 4%. While the specific details of this forecast are yet to be disclosed, the move reflects optimism in the company's global operations. Additionally, the company reaffirmed its commitment to core business growth and international expansion, though no immediate plans for mergers, acquisitions, or leadership changes were reported within the three-week period. There were no dividend or share repurchase announcements in the same timeframe.