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Jun 29, 2025
Papa John's Q2 2025 Earnings Report
Papa John's reported its second quarter 2025 financial results, exceeding expectations with a return to comparable sales growth in North America and strong international sales growth.
Key Takeaways
Papa John's delivered a strong second quarter, with total revenues increasing by 4% to $529.2 million, driven primarily by higher Commissary revenues. The company returned to comparable sales growth in North America and achieved robust international sales growth, contributing to a 4% increase in global system-wide restaurant sales. Despite higher revenues, net income decreased to $9.7 million due to increased G&A expenses and higher cost of sales.
Total revenues increased by 4% to $529.2 million, primarily due to a $20.3 million increase in Commissary revenues.
North America comparable sales increased by 0.9%, with Domestic Company-owned restaurants flat and North America franchised restaurants up 1%.
International comparable sales increased by 3.7%, contributing to a 4% increase in global system-wide restaurant sales.
Net income decreased to $9.7 million from $12.5 million in the prior year, mainly due to higher G&A expenses and increased food and labor costs.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Papa John's reiterated its 2025 annual guidance for several metrics and raised the range for International comparable sales, reflecting confidence in continued growth.
Positive Outlook
- International comparable sales guidance raised to 2% to 4% growth (previously flat to up 2%).
- System-wide sales projected to be up 2% to 5%.
- North America comparable sales expected to be flat to up 2%.
- Anticipated 85 to 115 gross openings in North America.
- Projected 180 to 200 gross openings in International markets.
Challenges Ahead
- Adjusted EBITDA guidance of $200 million to $220 million, indicating potential for lower profitability compared to prior periods.
- Depreciation & amortization projected at $70 million to $75 million, representing a significant expense.
- Interest expense expected to be $40 million to $45 million, impacting net income.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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