Papa Johns has reported a 0.9% increase in total revenues for the first quarter of 2025, reaching $518.3m, compared to $513.9m for the same period in 2024.
The uptick was primarily due to an $11.4m surge in commissary revenues, reflecting higher commodity prices, and a $6.6m boost in advertising funds revenue, following an increase in the National Marketing Fund contribution rate initiated in Q2 2024.
The company’s net income for the quarter stood at $9.3m, which was a significant $5.6m drop from the $14.9m reported in the Q1 of the prior year.
Global system-wide restaurant sales reached $1.22bn, marking a 1% growth excluding foreign currency impacts.
This was attributed to stronger International comparable sales and a 2% global net restaurant growth over the past 12 months.
However, these gains were partly negated by a dip in North America comparable sales.
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By GlobalDataAdjusted EBITDA also saw a decrease, falling by $10.9m from the previous year Q1.
Earnings per share (EPS) were impacted as well, with diluted EPS down to $0.27 from $0.44 and adjusted diluted EPS decreasing to $0.36 from $0.67 when compared year-over-year.
As of 30 March 2025, Papa Johns operated 6,019 restaurants across 50 countries.
Despite the mixed financial performance, Papa Johns remains consistent with its 2025 annual guidance.
The company forecasts system-wide sales to increase by 2% to 5%, with North America and International comparable sales ranging from flat to 2% rise.
The guidance also outlines restaurant development plans, with 85 to 115 new openings in North America and 180 to 200 internationally, alongside capital expenditures projected between $75m and $85m.
Papa Johns president and CEO Todd Penegor said: “We are pleased with our continued progress in the first quarter to advance our transformation as we execute against our five key priorities. Our strategic investments in marketing and technology are driving early momentum in the business, and customers are responding positively to our strengthened value proposition and enhanced digital and loyalty experiences, as evidenced by sequential improvement in comparable sales and transactions.”
In April 2024, Papa John’s International unveiled plans to open 50 more US restaurants by 2028 through a new agreement with franchisee Nadeem Bajwa and his company, the Bajco Group.
