Papa John’s shares rise as Q2 earnings beat expectations

Published 07/08/2025, 12:16
 Papa John’s shares rise as Q2 earnings beat expectations

Investing.com -- Papa John’s International (NASDAQ:PZZA), Inc shares climbed 3.6% on Thursday after the pizza chain reported second-quarter earnings that exceeded analyst expectations, driven by stronger-than-anticipated sales growth both domestically and internationally.

The company reported adjusted earnings per share of $0.41 for the second quarter, beating the analyst consensus of $0.35 by 6 cents.

Revenue came in at $529.2 million, surpassing the consensus estimate of $515.8 million. North America comparable sales increased 1% while international comparable sales rose 4% YoY.

Total (EPA:TTEF) global system-wide restaurant sales reached $1.26 billion, representing a 4% increase compared to the same quarter last year.

"Papa Johns second quarter results exceeded our expectations and are evidence that our strategy is working. We returned to comparable sales growth in North America and achieved strong sales growth internationally, driven by transaction gains as we win more customer visits with a focus on our core pizza business," said Todd Penegor, President and CEO.

The company opened 45 new restaurants system-wide during the quarter, including 19 in North America and 26 in international markets. However, net income decreased to $10 million from $13 million in the prior year quarter, while adjusted EBITDA fell to $53 million from $59 million a year ago.

Following the positive results, Papa John’s updated its fiscal 2025 outlook, raising its international comparable sales guidance to 2-4% growth from the previous projection of flat to 2% growth.

The company maintained its other guidance metrics, including system-wide sales growth of 2-5% and North America comparable sales growth of flat to 2%.

The pizza chain continues to expand its global footprint, with 5,989 restaurants operating across 50 countries and territories as of June 29, 2025, representing trailing twelve-month net restaurant growth of 2%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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