1) Strategy & Leadership
- Papa John's is executing a transformation plan aimed at becoming the best pizza makers in the industry.
- The company is focusing on improving 4-wall margins, enhancing customer experience, and supporting franchisees for long-term growth.
- Leadership is confident in the brand's strength and the ongoing transformation, despite challenges in the consumer environment and competitive pressures.

2) Financial & Segment Results
- Global system-wide restaurant sales were $1.2 billion, down 3% in constant currency.
- Total consolidated revenue decreased 8% to $479 million, with domestic company-owned revenues down $31 million due to refranchising and lower comparable sales.
- International comparable sales grew by 4%, with notable performance in the U.K. (11% growth) and the Middle East (9% growth).
- North American comparable sales declined mid-single digits, primarily due to lower new customer acquisition and transaction sizes.

3) Operational & Product Plans
- New product launches include Pan Pizza and oven-toasted sandwiches, aimed at enhancing the menu and attracting new customers.
- The company is also introducing Cheesy Garlic Bread and expanding its retail presence with garlic sauce available in major grocery chains.
- Technology investments include a new POS system and improved digital ordering capabilities to enhance customer experience and operational efficiency.
- The company is piloting labor optimization tools and has closed 44 underperforming locations to improve overall profitability.

4) Guidance & Outlook
- For 2026, Papa John's expects global system-wide sales to be flat to low single-digit declines, with North American comparable sales projected to decrease by 2% to 4%.
- The company aims to achieve consolidated adjusted EBITDA between $200 million and $210 million, with plans for significant marketing investments to support innovation.
- The outlook reflects ongoing competitive pressures and a cautious consumer environment, with expectations for improved performance in the second half of the year.

5) Problems / Headwinds
- The company faces challenges from a highly promotional QSR marketplace, with competitors compressing margins.
- North American sales were impacted by severe weather and a shift in customer ordering patterns, leading to lower transaction sizes.
- The competitive landscape remains intense, particularly from larger chains and aggregators, affecting customer acquisition and retention efforts.

Bottom line: Papa John's is navigating a challenging consumer environment while executing a comprehensive transformation strategy aimed at long-term growth and profitability. The focus on innovation, operational efficiency, and enhanced customer engagement positions the company for potential recovery in the second half of 2026, despite current headwinds.