Papa Johns names KM Capital as new franchise partner in Mexico

Papa John's International (PZZA) stock rose 8% after hours and overnight following a private equity-backed takeover bid at $47 per share, a 44% premium. Analysts at Stephens maintained an 'Overweight' rating with a $40 price target, citing long-term profitability potential despite recent operational challenges. The company reported weaker Q1 results, with a 7.7% revenue decline and 6.4% drop in North American comparable sales.

Papa John’s (PZZA) shares fell after Q2 results. Revenue fell 8.8% and system-wide sales declined 4.8%, with net income down to $8.7 million. The company suspended its dividend, cut EBITDA guidance to $185 million midpoint, and plans to close 200 to 250 stores in 2026. Domino’s (DPZ) was compared.

S&P Global Ratings cut Papa John’s International’s issuer credit rating to B+ from BB- and issue-level rating to B from B+, citing weaker operating performance and lower 2026 guidance. S&P expects 2026 North American comparable sales to fall 8% and adjusted leverage above 4x through 2027. Papa John’s suspended its dividend and plans restaurant closures.

Papa John’s International reported Q2 2026 revenue of $482.4 million and net income of $8.53 million. The company said it will suspend its quarterly dividend starting in Q3 2026 to fund a brand overhaul and reshaped leadership with new global marketing and development heads. The article cites 2029 projections of $1.9 billion revenue and $91.4 million earnings.

Papa John’s (NASDAQ:PZZA) said it will not pursue a near-term sale and instead focus on its internal turnaround after ending an 18-month strategic review, despite reported takeover interest from Irth Capital Management. Q2 2026 revenue fell to $482.4M, North America comps declined 8.3%, adjusted EBITDA was $52.7M, and EPS was $0.24. The board suspended the dividend and guided FY2026 adjusted EBITDA to $180M-$190M.

Analysts at Stephens and Benchmark downgraded Papa John’s (PZZA) after the company halted its dividend, cut its full-year adjusted EBITDA outlook, and said its turnaround is stalling. Q2 revenue fell 8.8% to $482.4M, North America comps dropped 8.3%, and adjusted EBITDA was about $52.7M. Stephens cut its target to $24 from $38; the company also ruled out a near-term sale.