Papa Johns has announced plans to close 300 underperforming restaurants across the United States by the end of 2027.
The decision comes as the pizza chain faces flat revenues and declining profits. Company leaders say the move is part of a broader cost-cutting and restructuring plan to improve long-term growth.
What Is Happening?
Around 200 locations will close by the end of 2026. The remaining stores will shut by the end of 2027.
According to Chief Financial Officer Ravi Thanawala, the affected outlets are not meeting brand standards or lack a clear path to steady profits.
In some markets, the company expects customers to shift to nearby Papa Johns stores. This approach could reduce operating costs while keeping overall sales in the same area.
What Are the Financial Challenges?
The closures follow a difficult financial period.
In February 2025, the company reported annual revenue of 2.1 billion dollars. That figure was unchanged from the previous year. Profits also declined.
Shares have fallen significantly over the past year. On Thursday, the stock was trading at 31.85 dollars, down 31 percent compared to the previous year.
Flat domestic sales and rising competition in the pizza market have added pressure.
Are There Layoffs?
Yes.
The company has reduced its corporate workforce by 7 percent. As of March 2025, it employed about 104,000 workers globally, including corporate and in-store staff.
It has not yet announced which specific US locations will close.
What Does This Mean for Customers?
Despite the closures, Papa Johns remains a large global brand.
The company operates around 6,000 restaurants in nearly 50 countries and territories.
Most customers in larger cities may still have access to nearby stores. In smaller markets, some communities could lose their local outlet.
Why Is This Important?
The move reflects wider challenges in the fast-food sector. Rising costs, cautious consumer spending, and strong competition have forced many chains to rethink their footprint.
For Papa Johns, the goal is clear: focus on stronger-performing stores and return to steady growth.
The coming two years will show whether this strategy improves sales and restores investor confidence.
