Papa Johns is closing 300 stores across US by end of 2027
Papa Johns will close about 300 stores across the United States by the end of 2027, the Louisville, Kentucky-based company announced during an earnings call on Thursday, Feb. 26.
Ravi Thanawala, Papa Johns' CFO and North America president, said he expects about 200 closures to occur in 2026. The closing stores, according to Thanawala, are primarily franchisee-owned and "are not meeting brand expectations or lack a clear path to sustainable financial improvement."
He added that the locations generate "negative four-wall" income and are over a decade old.
"We are taking action to better align corporate and field resources with our transformation priorities and optimize spans and layers in our organizations," Todd Penegor, Papa John's CEO, said of the closures during the call.
It is not immediately known which stores the pizza chain intends to close or when the closures will take place. USA TODAY reached out to Papa Johns for comment.
In 2025, Papa Johns undertook several efforts to improve the company, including appointing new company leadership, fleet and cost restructuring, organizational changes, innovations, and more.
Papa Johns reported a 2% year-over-year decrease in its revenue from North American stores in fiscal year 2025 in its earnings release. Revenue at company-owned restaurants was down 3% while franchised restaurants were down 2%.
The pizza chain saw a 1% increase in global sales for 2025 when compared to the prior year. This sales growth was supported by the international market, which saw a 5% increase in sales.
Thanawala previously managed the company's international wing and said the store-closing strategy is similar to the one he implemented in the United Kingdom that resulted in a 17% increase in the average number of sales per store.
"Select strategic closures will allow our North American franchisees to redirect resources to drive operational excellence in their core restaurants and accelerate growth in priority markets," he said, adding that the company has also cut its corporate workforce by 7%.
The company had 3,523 locations in the United States as of the end of 2025, according to financial filings.
Closures in 2026
The swath of closures resembles that of pizza delivery competitor Pizza Hut, which is set to close 250 "underperforming" locations in the United States in the first half of 2026.
During a Feb. 4 earnings call for parent company Yum! Brands, Chief Financial Officer Ranjith Roy said that the move was part of "Hut Forward," a strategy that includes "vibrant marketing, modernization of technology, and franchise agreements."
Pizza Hut's store sales in the United States declined by 3% in the fourth quarter of 2025.
Multiple fast-food and fast-casual chain restaurants across the United States have announced plans to downsize since the start of the year, with some stating they intend to focus resources on their stronger-performing stores.
Contributing: Olivia Evans, Louisville Courier Journal