Papa Johns International has reported a net income of $9.67m for the second quarter (Q2) of 2025, a decline from $12.53m in the same period of the previous year.
The company attributed the decline to increased general and administrative expenses, which resulted from investments in marketing and its loyalty programme, even though overall revenues were higher.
This decline was also due to a $3.7m rise in incentive compensation under the Management Incentive Plan, and increased food and labour costs at company-owned restaurants.
For Q2, which ended 29 June 2025, the company’s total revenues were $529.16m, an increase of 4% compared with the previous year's second quarter
The restaurant company attributed the growth to higher commissary revenues.
Papa Johns' global system-wide restaurant sales for the latest quarter were $1.26bn, representing an increase of 4% year-on-year.
Its North America comparable sales were up 1% from a year previously, while its international comparable sales increased 4%.
The company’s diluted earnings per common share in Q2 2025 were $0.28 compared with $0.37 in Q2 2024.
Adjusted earnings before interest, taxation depreciation and amortisation (EBITDA) were $52.6m, a $6.3m decline from the same period of the previous year.
In Q2 2025, the brand opened 45 new restaurants system-wide, with 19 new locations in North America and 26 in international markets.
Papa Johns international president and CEO Todd Penegor stated: “Papa Johns' second quarter results exceeded our expectations and are evidence that our strategy is working.
“We returned to comparable sales growth in North America and achieved strong sales growth internationally, driven by transaction gains as we win more customer visits with a focus on our core pizza business.
“Our progress in the second quarter reinforces my confidence that we are on the right track to deliver significant, sustainable profitable growth and increased value for all Papa Johns' stakeholders.”
Papa Johns International has reaffirmed its 2025 annual guidance for several key metrics and has increased the projected range for international comparable sales.
The company anticipates system-wide sales growth between 2% and 5%, while North America comparable sales are expected to remain flat or increase by up to 2%.
Meanwhile, the forecast for international comparable sales has been adjusted upward to a range of between 2% and 4%, from the previous estimate of flat to 2%.
The company plans to open 85 to 115 new locations in North America and 180 to 200 internationally.
Papa Johns also projects an adjusted EBITDA between $200m and $220m, with capital expenditures estimated between $75m and $85m.
