Papa John’s International, Inc. reported third‑quarter 2025 results on November 6, 2025, with total revenue of $508.2 million, a 0.3 % increase from the same period a year earlier. Net income fell to $4 million, down from $42 million in Q3 2024, while adjusted EBITDA was $47.8 million, a decline of $2.2 million year‑over‑year. Diluted earnings per share were $0.13 versus $1.27 a year earlier, and adjusted diluted EPS were $0.32 compared with $0.43 in 2024.
System‑wide sales reached $1.21 billion, up 2 % year‑over‑year. The growth was driven by a 10 % increase in international sales, which rose to $331.5 million, while North America sales slipped 1 % to $879.8 million. Comparable sales in North America fell 2.7 % to $859.5 million, largely due to weaker demand for non‑core menu items and a 15‑restaurant refranchising program. International comparable sales grew 7 % to $307.5 million, supported by stronger performance in the U.S. franchise and European markets. Segment‑level data show domestic company‑owned restaurants generated $165.2 million, North America franchising $35.0 million, North America commissaries $259.5 million, and international operations $44.7 million.
Margin compression was driven by a $41.3 million pre‑tax gain from the sale of two QC Center properties in 2024, which inflated last year’s net income, and by higher one‑time marketing and incentive expenses in 2025. General and administrative costs rose, and accelerated depreciation related to new technology investments added to operating expenses. The combination of a one‑time gain reversal and increased operating costs explains the sharp decline in net income and the modest drop in adjusted EBITDA.
Management revised its full‑year outlook. System‑wide sales growth is now projected at 1 %–2 % (down from 2 %–5 % previously). North America comparable sales are expected to decline 2 %–2.5 % (down from flat to up 2 %). International comparable sales guidance was raised to 5 %–6 % (up from 2 %–4 %). The dividend of $0.46 per share remains unchanged, with the next payment scheduled for November 28, 2025.
Todd Penegor, President and CEO, said the quarter reflected “strong performance in international markets, offset by softer North American sales amid a promotional QSR marketplace.” He added that the company is “sharpening its value proposition and rebuilding its innovation pipeline to add new sales layers,” underscoring a focus on refranchising, technology upgrades, and cost discipline to support long‑term growth.
The market reacted to the earnings miss and lowered guidance. Investors focused on the $0.13 diluted EPS, which fell 90 % from the $1.27 reported a year earlier, and on the $508.2 million revenue, which missed consensus estimates of roughly $525 million. The downgrade of North America comparable sales guidance and the overall reduction in system‑wide sales growth signaled management’s concern about near‑term domestic demand, while the higher international guidance highlighted confidence in overseas expansion. The combination of earnings and revenue misses with a cautious outlook tempered investor enthusiasm, despite the company’s strong international tailwinds.
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