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PZZA

Papa John's International, Inc.

PZZA

Papa John's International, Inc. • NASDAQ
$42.07 ▲ 0.50% (+0.21)
Market Cap $1.38 B
52w High $55.74
52w Low $30.16
Dividend Yield 1.84%
P/E 36.9
Volume 274.66K
Outstanding Shares 32.79M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $508.154M ▼ $81.392M ▼ $4.707M ▼ 0.926% ▼ $0.14 ▼ $41.085M ▼
Q2-2025 $529.166M ▲ $132.96M ▲ $9.531M ▲ 1.801% ▲ $0.28 $43.309M ▲
Q1-2025 $518.309M ▼ $127.848M ▲ $9.222M ▼ 1.779% ▼ $0.28 ▼ $42.308M ▼
Q4-2024 $530.77M ▲ $77.668M ▼ $14.799M ▼ 2.788% ▼ $0.45 ▼ $46.41M ▼
Q3-2024 $506.807M $86.356M $41.808M 8.249% $1.28 $82.489M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $38.972M ▲ $884.097M ▼ $1.308B ▲ $-439.305M ▼
Q2-2025 $33.299M ▼ $890.442M ▼ $1.306B ▼ $-431.997M ▼
Q1-2025 $44.012M ▲ $898.088M ▲ $1.314B ▲ $-431.934M ▼
Q4-2024 $37.955M ▲ $888.952M ▲ $1.302B ▲ $-429.526M ▲
Q3-2024 $17.55M $860.875M $1.276B $-430.933M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $4.447M ▼ $39.349M ▲ $-18.229M ▼ $-15.457M ▲ $5.673M ▲ $18.897M ▲
Q2-2025 $9.671M ▲ $35.507M ▲ $-12.306M ▼ $-34.184M ▼ $-10.713M ▼ $17.433M ▼
Q1-2025 $9.343M ▼ $31.336M ▼ $-7.083M ▲ $-18.567M ▼ $6.057M ▼ $19.105M ▼
Q4-2024 $14.799M ▼ $50.748M ▲ $-24.796M ▼ $-5.088M ▲ $20.405M ▲ $25.195M ▲
Q3-2024 $41.808M $13.927M $31.289M $-52.156M $-6.755M $-3.849M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Domestic company owned restaurants segment
Domestic company owned restaurants segment
 $170.00M ▲$170.00M ▲$180.00M ▲$170.00M ▼
International Segment
International Segment
 $40.00M ▲$40.00M ▲$40.00M ▲$40.00M ▲
North America commissary segment
North America commissary segment
 $890.00M ▲$260.00M ▼$270.00M ▲$260.00M ▼
North America franchising segment
North America franchising segment
 $40.00M ▲$40.00M ▲$40.00M ▲$30.00M ▼
Product and Service Other
Product and Service Other
 $0 ▲$0 ▲$0 ▲$0 ▲
Advertising
Advertising
 $0 ▲$10.00M ▲$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown meaningfully from pre‑pandemic levels, but it looks like the easy growth phase is behind them. Sales peaked recently and then slipped a bit, suggesting a more mature business facing a tougher competitive and economic backdrop. Profitability has generally improved over the last five years. Gross profit expanded strongly as the company scaled and managed pricing and costs, though the most recent year shows some margin give‑back, likely from food, labor, or discounting pressure. Operating profit and EBITDA have trended upward over time, pointing to better underlying efficiency. Net income and earnings per share have been choppy rather than steadily rising. There was a standout year earlier in the period, followed by a reset to more modest profit levels. Overall, the income statement describes a solid, established brand with improving but not spectacular profitability, now working harder to protect margins in a more challenging environment.

Balance Sheet

Balance Sheet The balance sheet shows a business that leans heavily on debt and financial engineering rather than on large asset build‑ups. Total assets have stayed fairly stable, but cash on hand has drifted down from earlier levels, leaving less immediate liquidity than a few years ago. Debt has climbed meaningfully over the period, while reported shareholder equity is negative and has become more so. This kind of capital structure is common in mature, franchise‑heavy consumer brands that return a lot of capital to shareholders, but it does mean the company is more reliant on consistent cash generation and access to credit. In short, the balance sheet is efficient but financially tight: not obviously weak, yet with less cushion than a conservatively financed company would have. It works well when business is steady, but it raises sensitivity to downturns, higher interest rates, or unexpected shocks.

Cash Flow

Cash Flow Despite the leveraged balance sheet, the business has reliably generated cash from operations each year. Operating cash flow has been healthy throughout the period, though it was stronger in some years than in the most recent one, hinting at some recent pressure on working capital or margins. Free cash flow has consistently been positive after funding a steady level of capital spending. There was a particularly strong year with very solid free cash flow, followed by a step down more recently, but still comfortably above zero. Capital spending itself has been relatively measured and predictable, reflecting a mature system investing in technology, store base, and brand rather than in heavy physical assets. Overall, the cash profile is a key support for the company: it appears capable of funding its needs and shareholder returns, but with less room for error now that free cash flow has moved off its peak while debt remains elevated.

Competitive Edge

Competitive Edge Papa John’s competes in one of the most crowded and price‑sensitive parts of the restaurant industry. Its main edge is brand positioning around higher‑quality ingredients and a “better pizza” promise, which targets customers willing to pay a slight premium versus pure value players. That brand, combined with a largely franchised model, gives Papa John’s scale, marketing reach, and relatively asset‑light growth. The company also has strong name recognition and a long operating history, which helps maintain customer trust and franchisee interest. Still, the competitive moat is narrow. Customers can easily switch among pizza chains and local independents, promotions are constant, and delivery platforms have reduced differentiation in convenience. Dependence on a limited set of key suppliers also introduces some concentration risk. The strategy to lean into quality, brand, and technology is sound, but the industry structure keeps pricing power and long‑term growth potential constrained.

Innovation and R&D

Innovation and R&D The company is leaning heavily into digital innovation and product development to stand out. On the tech side, its partnership with a major cloud provider and the creation of an internal innovation team are notable. They’re pushing AI‑driven personalization, smarter marketing, better delivery routing, new point‑of‑sale systems, and even AI chat and voice ordering, all aimed at smoother operations and a stickier customer experience. On the commercial side, Papa John’s is very active with menu innovation: new crust types, unique formats like Papadias and shareable “dippable” pizzas, snack‑style items, and high‑profile collaborations. These help refresh the brand, support premium pricing, and attract younger and more experimental customers. The loyalty program revamp and upcoming new app show a clear focus on building a stronger digital ecosystem around the customer. If executed well, this combination of tech, menu innovation, and loyalty could modestly widen their narrow moat by increasing repeat usage and improving franchisee economics, though the benefits will likely emerge gradually rather than all at once.

Summary

Papa John’s today looks like a mature, branded, franchise‑heavy restaurant business with decent growth from pre‑pandemic levels, but recent top‑line momentum has cooled. Profitability is better than it was several years ago, yet no longer on a steep improvement path and now facing more cost and competitive headwinds. The company runs with a lean and highly leveraged balance sheet: modest assets, reduced cash, rising debt, and negative equity. That structure amplifies both the benefits of steady cash generation and the risks if conditions worsen. Cash flows so far have been solid and consistently positive, but they are not trending straight up, which makes disciplined capital allocation important. Strategically, Papa John’s is trying to differentiate through ingredient quality, brand, technology, and menu innovation. Its moat is real but narrow, in a market where customers can switch with little friction and rivals are aggressive on price and convenience. The key things to watch are: whether digital and AI investments actually boost sales and margins; whether menu innovation continues to resonate without diluting the core brand; whether franchisee profitability improves; and whether the company can comfortably support its leveraged structure through economic cycles. Outcomes on these fronts will drive how resilient and valuable the business becomes over time.

NEWS

November 25, 2025 · 5:31 PM UTC

Papa Johns Completes Strategic Refranchising and New Restaurant Development Agreement with Franchisee Chris Patel of Pie Investments

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November 18, 2025 · 7:30 AM UTC

Papa Johns Promotes Ravi Thanawala to Chief Financial Officer and President, North America

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November 6, 2025 · 7:00 AM UTC

Papa Johns Announces Third Quarter 2025 Financial Results

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November 3, 2025 · 1:00 PM UTC

Bigger, Bolder, Better: Papa Johns Redefines Pizza Night with The Grand Papa Pizza

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October 29, 2025 · 4:01 PM UTC

Papa Johns Declares Quarterly Dividend

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