Papa John’s International, Inc. (NASDAQ:PZZA) shares moved lower in premarket trading Thursday after the pizza chain reported fourth-quarter revenue that fell short of Wall Street expectations, despite delivering stronger-than-forecast earnings.
The company posted adjusted diluted earnings per share of $0.34, topping analyst estimates of $0.32. Total revenue, however, declined 6% year over year to $498.2 million, missing consensus forecasts of $516.5 million.
Shares slipped about 1.8% ahead of the opening bell following the release.
The revenue miss was largely tied to a refranchising deal involving 85 company-operated restaurants, along with a 5% drop in comparable sales across North America. International markets provided some offset, with comparable sales rising 6% during the quarter.
“We are encouraged by the progress we are making in our transformation as we further reinforce our brand health, sharpen our value proposition, build our innovation pipeline and enhance the customer experience,” said Todd Penegor, President and CEO.
Fourth-quarter adjusted EBITDA totaled $51.1 million, down from $57.9 million a year earlier, reflecting increased marketing spending and higher incentive compensation costs for management.
Global system-wide restaurant sales edged down 1% to $1.23 billion, as a 4% decline in North America sales outweighed an 8% increase internationally.
Looking ahead, Papa John’s expects fiscal 2026 adjusted EBITDA between $200 million and $210 million, compared with $201.1 million recorded in fiscal 2025. The company forecasts North America comparable sales to fall between 2% and 4%, while international comparable sales are projected to grow 2% to 4%.
Expansion remains a key focus, with 142 restaurants opened globally during the quarter — including 101 outside North America. For 2026, the company plans to open 40 to 50 new locations in North America and between 180 and 220 internationally.