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Sep 28
Papa John's Q3 2025 Earnings Report
Papa John's reported flat total global comparable sales, a decrease in North America comparable sales, and an increase in International comparable sales for the third quarter of 2025.
Key Takeaways
Papa John's experienced mixed results in Q3 2025, with strong international performance offset by softer North American sales. The company reported flat total revenues and a significant decrease in net income compared to the prior year, primarily due to a one-time gain in the previous year. Diluted EPS also saw a substantial decline, while adjusted diluted EPS decreased by $0.11. The company is accelerating its refranchising program and has identified substantial G&A and supply chain savings to be realized by fiscal year 2028.
Total revenues remained flat at $508.2 million compared to the prior year's third quarter.
Net income significantly decreased to $4.5 million from $41.8 million in the prior year, largely due to a one-time gain on the sale of QC Center properties in Q3 2024.
Diluted earnings per common share was $0.13, down from $1.27 in the prior year, while adjusted diluted earnings per common share was $0.32, a decrease from $0.43.
International comparable sales showed strong growth of 7.1%, contrasting with a 2.7% decrease in North America comparable sales.
Papa John's
Papa John's
Papa John's Revenue by Segment
Papa John's Revenue by Geographic Location
Revenue by Segment
Domestic Company-owned Restaurants Revenue
CapyFin.comNorth America Franchising Revenue
CapyFin.comNorth America Commissaries Revenue
CapyFin.comInternational Revenue
CapyFin.comAll Other Segments Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Papa John's has updated its fiscal year 2025 outlook, revising down system-wide sales and North America comparable sales expectations, while increasing international comparable sales guidance. Adjusted EBITDA and depreciation and amortization guidance have also been adjusted.
Positive Outlook
- International comparable sales guidance increased to 5% to 6% (previously 2% to 4%).
- Interest expense guidance narrowed to $40 million to $42 million (previously $40 million to $45 million).
- Effective tax rate guidance narrowed to 27% to 30% (previously 28% to 32%).
- Capital expenditures guidance remains stable at $75 million to $85 million.
- Identified at least $25 million of G&A savings and $50 million of supply chain savings, expected to be fully realized by fiscal year 2028.
Challenges Ahead
- System-wide sales guidance revised down to 1% to 2% (previously 2% to 5%).
- North America comparable sales guidance revised down to -2% to -2.5% (previously flat to up 2%).
- North America gross openings guidance narrowed to 85 to 95 (previously 85 to 115).
- Adjusted EBITDA guidance revised down to $190 million to $200 million (previously $200 million to $220 million).
- Depreciation and amortization guidance increased to $80 million to $95 million (previously $70 million to $75 million).