Papa John's to Close 300 Restaurants as Pizza Chain Cuts Costs

Updated Feb. 26, 2026 at 3: 34 PM ET — Papa John's plans to shutter 300 restaurants by the end of 2027 as it moves to cut costs and close underperforming locations, a decision that could reshape its domestic footprint. The pizza chain said 200 of those closures will occur by the end of this year, while the remainder will follow through 2027.

Papa John's 300-store reduction plan

The company outlined a targeted reduction of 300 restaurants on a fourth-quarter earnings call. The chief financial officer said some outlets are "not meeting brand expectations or lack a clear path to sustainable financial improvement, " and that other locations represent places where sales can be transferred effectively to nearby outlets. Details on which restaurants will close were not provided and remain not publicly confirmed.

Pizza chain to close 200 this year

The initial tranche is set to remove 200 sites by the end of this year, with the balance slated through the end of 2027. Management framed the move as a way to reduce costs and sharpen growth prospects by eliminating underperforming units and consolidating sales where nearby locations can pick up demand. The company has roughly 6, 000 locations across about 50 countries and territories, per its public materials.

Financial impact and next steps

The restructuring follows a year in which the company reported 2025 revenues of $2. 1 billion, effectively flat with the prior year, alongside shrinking profits. The company also reduced its corporate workforce by 7% as part of cost-cutting measures. The stock traded on Thursday at $31. 85 ET and has fallen 31% over the last year. Management did not specify timing for the workforce reductions or indicate whether additional cuts are planned.

Key takeaways

• 300 restaurant closures planned by end of 2027; 200 to close this year.
• Corporate workforce reduced by 7%; 6, 000 locations worldwide remain on the system.
• 2025 revenue was $2. 1 billion, flat year over year; stock at $31. 85 ET, down 31% over the last year.

Analysis: The company is pursuing site-level consolidation and overhead reductions to address flat revenue and shrinking profits. Observable indicators—planned closures, workforce cuts, and a year-over-year flat revenue figure—point to an emphasis on margin recovery and operational efficiency. Forward look: if closures successfully shift sales to nearby units and reduce operating expenses, margins may improve; if displaced local demand is not retained by adjacent locations, the restructuring could pressure same-store sales. Specific location-level impacts and timing remain unclear at this time.