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Mar 30, 2025
Papa John's Q1 2025 Earnings Report
Papa John’s reported a slight revenue increase in Q1 2025, with earnings and net income falling due to increased marketing and loyalty investments.
Key Takeaways
Papa John’s saw modest revenue growth driven by higher commissary and advertising fund contributions, but profits declined as the company invested in marketing, loyalty programs, and hosted a franchisee conference.
Total revenue increased slightly to $518.3 million, up from $513.9 million in Q1 2024.
Net income dropped to $9.3 million, down from $14.9 million year-over-year.
EPS was $0.27, with non-GAAP adjusted EPS at $0.36.
International comparable sales rose 3.2%, while North America saw a decline.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Papa John’s reaffirmed its full-year 2025 outlook with moderate growth expectations for system-wide sales and EBITDA, while maintaining a focus on strategic investment in marketing, technology, and international expansion.
Positive Outlook
- System-wide sales expected to grow 2% to 5%
- International unit development targeted at 180–200 new stores
- Adjusted EBITDA guidance of $200M to $220M
- International comparable sales expected to be flat to up 2%
- Capital expenditures projected between $75M to $85M, enabling growth
Challenges Ahead
- North America comparable sales expected to remain flat to just 2% up
- Ongoing impact of UK restaurant closures and refranchising
- Increased marketing and loyalty expenses could pressure margins
- No change in high interest expense guidance ($40M to $45M)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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