Papa Johns International reported a notable fall in profit for the fourth quarter (Q4) and full year 2025 (FY25), despite annual revenue holding steady.
Net income for the quarter that ended on 28 December 2025 declined to $8.6m from $14.96m a year earlier.
The company linked the drop to higher depreciation and amortisation (D&A) charges, including $12.3m of accelerated depreciation expense tied to retiring “legacy technology platforms”, and higher general and administrative (G&A) expenses.
The pizza chain’s Q4 revenues totalled $498.2m, down 6.1% from $530.8m recorded in the same period of 2024.
Global system-wide restaurant sales in Q4 2025 were $1.23bn, a 1% reduction compared with the prior-year quarter.
Adjusted EBITDA for the quarter was $51.1m, $6.7m lower than the previous year’s $57.8m.
The company attributed the decrease to higher expenses related to “incremental investment in marketing and promotional campaigns” and “higher management incentive compensation”.
Diluted earnings per common share for Q4 2025 were $0.21, compared to $0.44 in the fourth quarter of 2024.
For the full year 2025, Papa Johns’ total revenues were $2.1bn, described as flat against the prior year.
Full-year net income also fell to $32.1m from $84.1m recorded in 2024. Adjusted EBITDA for 2025 was $201m, down from $227m in the previous year.
In Q4 2025, Papa Johns opened 142 restaurants system-wide, including 41 in North America and 101 in international markets.
For the full fiscal year, it opened 279 restaurants, with 96 in North America and 183 internationally.
The company also issued 2026 guidance. It forecasted global system-wide restaurant sales to be flat to down in the low single digits and adjusted EBITDA to be in the range of $200m-$210m.
Papa Johns International president and CEO Todd Penegor said: “In 2026, we are focused on continuing our transformation work to best position Papa Johns to win in a dynamic QSR category.
“Our strong balance sheet is supporting investment in these initiatives, which we believe will deliver high returns.”
