Papa John’s reports Q2 revenue decline of 8.8%, suspends dividend, and cuts EBITDA guidance to $185 million midpoint.
Papa John’s International Inc. (NASDAQ:PZZA) shares fell 17.8% after reporting a second-quarter revenue drop of 8.8% to $499.6 million. System-wide restaurant sales declined 4.8%, while net income dipped by $1 million to $8.7 million.
The company suspended its dividend, reduced EBITDA guidance to a midpoint of $185 million from $200 million, and announced plans to close 200-250 North American stores in 2026. Prior-year Q2 revenue was $547.8 million, with net income at $9.7 million.
Analyst commentary noted concerns over the company’s financial health, contrasting it with competitors like Domino’s, which has shown stronger performance.