Papa Johns International, a major pizza delivery and takeout chain, has closed dozens of restaurants across 17 US states so far this year. The company, which operated 3,487 locations in North America as of March, previously announced plans to shut up to 300 stores by the end of 2027, with two-thirds of those closures expected in 2026.
Reasons for Closures
The chain has been grappling with declining sales due to several factors, including shifting consumer preferences away from pizza, rising operating costs, and increasingly price-sensitive customers. Rival Pizza Hut has also closed multiple locations, and its parent company, Yum Brands, is reportedly exploring a sale of the chain.
Financial Performance
Papa Johns reported a 2% decrease in North American same-store sales in its 2025 annual report. According to Fast Company, same-store sales fell an additional 6.4% in the first quarter of 2026. The company's stock has dropped roughly 21% year to date, contrasting with the S&P 500's nearly 8% gain. Over the past five years, Papa Johns' stock price has plummeted almost 70%.
Locations Affected
More than 40 Papa Johns locations have closed this year. The affected states include:
- Alabama: 1
- Arizona: 4
- California: 5
- Colorado: 1
- Florida: 5
- Georgia: 1
- Illinois: 1
- Michigan: 2
- Missouri: 1
- North Carolina: 3
- New York: 1
- Ohio: 1
- Oklahoma: 1
- South Carolina: 1
- Texas: 12
- Virginia: 2
- Wisconsin: 1
Papa Johns has not specified which locations are targeted for closure as part of its transformation plan or how many jobs may be lost.
