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Pizza chain Papa John’s plans to close 300 stores by the end of 2027, and the company has already closed more than 40 stores.
Papa John’s said in its May 2026 financial report that the closures occurred during the company’s first quarter, which ran from Dec. 28, 2025 to March 29, 2026. The brand has closed 44 restaurants in North America, including five company-owned and 39 franchised locations.
The 44 closures were in 17 states, including Texas, California, Florida, Arizona, Michigan, North Carolina and Virginia, the Daily Mail reported.
The closures come after the company announced on February 26, 2026, that it would close 300 underperforming restaurants across the United States by the end of 2027. About 200 of those stores will close in 2026, Papa John’s said on a call with investors.
USA TODAY reached out to Papa John’s for a complete list of first-quarter store closures, but did not immediately receive a response.
Why are Papa John’s stores closing?
Ravi Tanawala, chief financial officer and president of Papa John’s North America, said on a Feb. 26 conference call that the closures are part of the company’s efforts to “improve restaurant profitability” and maximize its restaurant portfolio.
“The majority of our global restaurants have a long history of strong performance, generating strong returns for both corporate and franchise owners,” he said on a conference call. But the 300 restaurants the company plans to close across North America are underperforming, he said.
Tanawala also said during the conference call that the stores being closed will primarily have been franchise-owned for more than 10 years and have average sales of less than $600,000 per store.
He said the closures will improve health by allowing franchisees to devote more resources to operating their remaining restaurants and priority markets.
“This is the same strategy we successfully deployed during my time managing international operations,” he said, adding that in the UK, Papa John’s improved average sales by 17%.
He said on the call that the company’s domestic revenue has been depressed in recent years due to food cost and labor inflation. The company plans to improve profitability through supply chain savings and operational efficiency.
President says the transaction has contributed to the company’s sales increase
In February, when the company announced its closure, President and CEO Todd Penegor said 2025 would be a “transformational year for Papa John’s.”
He said the company has improved the brand’s health technology platform, customer experience, restaurant selection and cost structure.
He said customers are buying more pizza overall, and the company’s total number of pizzas sold rose 1% during the quarter. The company also saw an increase in orders that included multiple pizzas.
In North America, the company’s carryout business is seeing low single-digit order growth, which he attributes to the company’s 50% off carryout offer in November 2025.
Regarding closures and franchised locations, Penegor said the company is doing its best to support its franchisees, “whether it’s relocation, closure, rebranding or new construction.”
“(We are) working to ensure long-term success in partnership with the franchise community,” he said.
Saleen Martin is a reporter on USA TODAY’s Trends team. She is from Norfolk, Virginia (757). Email sdmartin@usatoday.com.
