Papa Johns plans 300 U.S. restaurant closures by 2027, with most slated for 2026

Company links closures to low sales and profitability review

Papa John’s International Inc., the Louisville-founded pizza chain, said it expects to close hundreds of underperforming U.S. restaurants as part of a multi-year effort to improve profitability and streamline its North American footprint.

Executives outlined plans to close 300 restaurants by the end of 2027, with the majority of closures expected to occur during 2026. The company said the targeted locations are generally units with low sales and weak profitability, and that the decision follows a strategic review of its North American restaurant portfolio.

How many stores could close in 2026

On the company’s fourth-quarter earnings call, leadership indicated that 200 restaurants are expected to close by the end of 2026, with the remaining closures occurring through 2027. The company described multiple factors behind the selection of stores, including restaurants that are not meeting brand standards or that lack a clear path to sustainable improvement.

Executives also said some closures are tied to market overlap, where sales can be shifted to nearby locations rather than lost entirely, a scenario more likely in areas with higher store density.

Financial context from the latest earnings report

The closure plan was discussed alongside Papa Johns’ latest quarterly and annual results for the fiscal year ending Dec. 28, 2025.

• Fourth-quarter 2025 total revenues were $498.2 million, down 6% from the same quarter a year earlier.
• Full-year 2025 total revenues were about $2.1 billion, roughly flat compared with the prior year.
• North America comparable sales declined in both the quarter and the full year, while international comparable sales increased.

The company also issued a 2026 outlook that anticipates continued pressure in North America, projecting comparable sales to decline by 2% to 4% for the year, while international comparable sales are expected to rise.

Operational measures and longer-term targets

Papa Johns said it is pursuing a broader set of initiatives alongside store rationalization, including operational efficiency programs and supply chain cost savings aimed at improving restaurant-level profitability over time. The company expects at least $25 million in corporate cost savings outside of marketing through 2027, with a portion anticipated in 2026, and has separately identified supply chain savings it expects to contribute to improved profitability in North America by fiscal 2028.

Executives framed the restaurant closures as part of efforts to improve “restaurant profitability and fleet health” following a review of the North American portfolio.

Papa Johns did not provide, in its initial comments, a public list of which restaurants will close, nor did it break out expected closures by state or market.