Papa John’s shutters 44 locations as closure plan accelerates

Papa John’s has closed 44 restaurants in North America during the first quarter of 2026, as part of a broader plan to shut down 300 underperforming locations by the end of 2027. The closures span 17 states and largely involve older, franchise-owned restaurants

For the third morning after the signs came down. the store’s regulars still seemed to look for someone to explain what happened. Papa John’s. in multiple locations across the United States. is moving ahead with a wide round of shutdowns—closing 44 restaurants in North America during the first quarter of 2026—while the company’s larger target remains set on eliminating 300 underperforming locations by the end of 2027.

The company said those closures took place during its first quarter, which ran from Dec. 28, 2025, to March 29, 2026. In that period, Papa John’s closed 44 restaurants in North America: five company-owned locations and 39 franchised locations.

The closures were spread across 17 states, including Texas, California, Florida, Arizona, Michigan, North Carolina and Virginia, according to the reported list of shutdown locations.

Papa John’s first outlined the scale of the pullback earlier this year. On Feb. 26, 2026, the company said it would close 300 underperforming restaurants across the U.S. by the end of 2027. During an investor call around that announcement, the company said about 200 of those closures would happen in 2026.

The stores being removed from the system weren’t random. Papa John’s chief financial officer and president of Papa John’s North America. Ravi Thanawala. said the closures are aimed at “improve[ing] restaurant profitability” and tightening up the company’s restaurant portfolio. He said the restaurants slated for closure have underperformed financially.

Thanawala described the closing locations as mainly franchise-owned. over 10 years old. and bringing in average sales of less than $600. 000 per location. He also tied the move to franchise health. saying the closures will free up resources for franchisees to focus on their remaining restaurants and priority markets.

In the company’s explanation, the shutdowns weren’t presented as retreat so much as redeployment. Thanawala said the strategy mirrors what Papa John’s used internationally, adding that in the United Kingdom, the company improved average sales by 17%.

The financial pressure behind the plan shows up in how Papa John’s talked about earnings. Thanawala said the company’s domestic earnings have suffered over the past few years due to food costs and labor inflation. To improve earnings, he pointed to supply chain savings and making operations more efficient.

As the closures proceed, the company also framed its broader performance in terms of a transformation already underway. In February. when the company announced the restaurant shutdowns. Papa John’s president and chief executive Todd Penegor called 2025 “a year of transformation for Papa John’s.” He said the company improved the brand’s health technology platform. customer experience. restaurant fleet and cost structure.

Penegor said customers are buying more pizza overall. During the company’s fourth quarter, he said the total number of pizzas sold increased 1% and that orders including multiple pizzas also rose.

He also described how carryout is faring. In North America, the company’s carryout business showed low, single-digit increases in order growth, which he attributed to Papa John’s 50% off carryout offer in November 2025.

For franchise operators facing relocations or closures, Penegor said the company is trying to keep support close to the ground. When asked about franchise locations and the shutdowns. he said Papa John’s is doing its best to support franchisees—“whether that’s a relocation. whether that’s a closure. whether that’s a reimage. whether that’s a new build.”.

He added that the company is working to partner with its franchise community “to set them up for long-term success.”

The effort is unfolding under a timeline that leaves little room for hesitation: with 44 restaurants already closed in the first quarter of 2026 and the company targeting 300 closures by the end of 2027. the next steps will largely determine how quickly Papa John’s can shift resources. stabilize franchise profitability. and put the underperforming locations behind it.

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