| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 482.40 | 0.8% | 8.8% |
| Total Income | 482.40 | 0.8% | 8.8% |
| Expenditure | 459.21 | 0.3% | 9.0% |
| PBT | 13.67 | 23.4% | 1.7% |
| Net Profit | 8.53 | 17.5% | 10.5% |
| OPM | 4.81% | 0.47pp | 0.18pp |
| NPM | 1.77% | 0.25pp | 0.03pp |
| EPS | 0.25 | 19.1% | 10.7% |
Papa John's Announces Q2 2026 Financial Results and Updates Fiscal 2026 Outlook
06 Aug 2026 · 6 Aug, 4:37 pm
Summary
Papa John's International, Inc. reported a decrease in global system-wide restaurant sales of 4.8% to $1.20 billion for the second quarter of 2026, driven by an 8.3% decline in North America comparable sales, partially offset by a 1.5% increase in international comparable sales. Net income was $9 million, and adjusted EBITDA was flat at $53 million year-over-year. The company's adjusted diluted earnings per common share rose to $0.46. In a strategic shift, Papa John's announced the suspension of its quarterly dividend to fund investments in its transformation strategy, which includes accelerating growth initiatives and improving restaurant economics. The company also revised its fiscal 2026 outlook downwards for global system-wide sales and adjusted EBITDA.
Key Highlights
- 1
Global system-wide restaurant sales decreased 4.8% to $1.20 billion in the second quarter of 2026 compared to the prior year.
- 2
North America comparable sales decreased 8.3%, while International comparable sales increased 1.5% in Q2 2026.
- 3
Net income for the second quarter was $9 million, a decrease from $10 million in the prior year second quarter.
- 4
Adjusted EBITDA remained flat year over year at $53 million for the second quarter of 2026.
- 5
Diluted earnings per common share was $0.24, down from $0.28 in the prior year second quarter, while adjusted diluted earnings per common share increased to $0.46 from $0.41.
- 6
The Company announced the suspension of its quarterly dividend beginning with the third quarter of 2026 to accelerate transformation strategy investments.
- 7
Papa John's updated its fiscal 2026 outlook, projecting global system-wide restaurant sales to be down 2% to 4% and adjusted EBITDA between $180 million and $190 million.
Management Comments
Todd Penegor
Second quarter results reflected continued momentum in our International business, where we delivered our seventh consecutive quarter of positive comparable sales, and ongoing headwinds in North America driven by the softer consumer environment, lower order volumes, and a highly promotional QSR marketplace. While our transformation is taking longer than anticipated, we continue to execute our strategy with discipline and focus and are seeing encouraging progress, including a growing and highly engaged Papa Rewards membership, supply chain savings, and AI-driven improvements to the customer ordering experience. By accelerating investments to strengthen our competitive position, improve restaurant economics, and attract new customers, we can build an even stronger foundation to gain market share and drive sustainable long-term growth. Accordingly, the Board has decided to suspend the Company’s quarterly dividend beginning with the third quarter of 2026 so that we have greater flexibility to make these investments and maintain our strong balance sheet. As we look ahead, we are confident that we have the right operating and capital allocation strategy in place to improve performance and create value for our shareholders, customers and franchisees.
Informational and educational content only. Not investment advice.