Restaurant India News: Papa Johns Q1 2026 Revenue Declines Amid North America Sales Pressure

Papa Johns International reported a decline in revenue and profit for the first quarter of 2026, as weaker consumer demand and competitive pressure in the quick-service restaurant segment impacted its North America business.

The restaurant chain posted total revenue of $478.6 million for the quarter ended 29 March 2026, down 7.7 percent from $518.3 million during the same period last year. The decline was primarily linked to a $31 million drop in revenue from domestic company-owned restaurants.

Net income attributable to common shareholders fell to $6.95 million in Q1 2026, compared to $9.02 million a year earlier. The company said lower sales affected profitability, although the impact was partially offset by reduced cost of sales and lower general and administrative expenses.

Global system-wide restaurant sales stood at $1.20 billion during the quarter, marking a 3 percent decline year-on-year. North America system-wide sales decreased 6 percent to $868.9 million, while international system-wide sales increased 6 percent to $333.4 million. Quarterly adjusted EBITDA declined to $48 million from $50 million in the prior-year quarter. Diluted earnings per common share also fell to $0.21 from $0.27 last year.

Despite softer sales performance, the company continued expanding its store network during the quarter, adding 28 restaurants globally. This included eight new restaurants in North America and 20 additional outlets across international markets.

The company’s international operations continued to deliver growth, supported by positive comparable sales momentum across multiple regions. The performance highlights the increasing role of international markets in supporting global quick-service restaurant operators amid slower discretionary spending in the US market.

“First quarter results reflected continued strong performance in our international markets where we delivered the sixth consecutive quarter of positive comparable sales,” said Papa Johns International president and CEO Todd Penegorr.

“In North America, results were in line with our expectations as we navigate the cautious consumer environment and promotional QSR marketplace,” he added.

“As we look ahead, we are focused on advancing our transformation strategy, including through an expanded range of value options and leaning aggressively into innovation. Execution in these areas will enable us to meet customers where they are and unlock more layers of growth,” Penegor said.