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Sep 28, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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%).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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