The pizza chain suspends its quarterly dividend and lowers full-year guidance after North American same-store sales fell sharply.
Papa Johns International Inc. will suspend its quarterly dividend starting this month to redirect capital toward its turnaround plan. The move follows an 8.3 percent decline in North American same-store sales during the second quarter, prompting the company to revise its full-year outlook downward.
The company now expects global systemwide sales to decline between 2 percent and 4 percent for the year, with adjusted EBITDA ranging from $180 million to $190 million. This includes an additional $18 million investment in the second half for marketing and other initiatives. Prior guidance had not reflected this level of decline.
CEO Todd Penegor acknowledged the turnaround is progressing slower than anticipated but emphasized the board’s decision to focus on executing its transformation plan rather than pursuing a sale. The company will allocate freed-up capital to marketing, franchisee support, and technology upgrades.