Revenue growth has entered a period of sustained decline, contracting by 7.7% in 2026Q1 while gross margins experienced extreme volatility, dropping from 29.9% in 2024Q3 to 16.0% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 2.01B | 2.05B | 2.06B | 2.14B | 2.1B | 2.07B | 1.81B | 1.62B | 1.57B | 1.78B | 1.71B | 1.64B | 1.6B | 1.44B | 1.34B | 1.22B | 1.13B | 1.11B | 1.13B | 1.06B | 1B | 968.79M | 942.43M | 917.38M | 946.22M | 971.23M | 944.68M | 805.3M | 669.8M | 508.8M | 360.1M |
| Revenue Growth % | -2.41% | -0.27% | -3.57% | 1.6% | 1.63% | 14.07% | 11.98% | 2.92% | -11.78% | 4.07% | 4.66% | 2.45% | 11.06% | 7.18% | 10.24% | 8.12% | 1.84% | -2.3% | 6.44% | 6.19% | 3.38% | 2.8% | 2.73% | -3.05% | -2.58% | 2.81% | 17.31% | 20.23% | 31.64% | 41.29% | 42.11% |
| Cost of Goods Sold | 1.61B | 1.46B | 1.48B | 1.72B | 1.71B | 1.64B | 1.47B | 1.33B | 1.22B | 1.43B | 1.35B | 1.02B | 1.01B | 859.98M | 837.68M | 941.13M | 864.47M | 867.44M | 915.03M | 663.47M | 715.79M | 552.06M | 541.63M | 687.87M | 536M | 561.69M | 598.43M | 457.5M | 393M | 307.8M | 223.6M |
| COGS % of Revenue | - | 71.11% | 71.79% | 80.37% | 81.52% | 79.24% | 81.02% | 82.06% | 77.52% | 80.12% | 79.04% | 62.23% | 63.36% | 59.76% | 62.39% | 77.28% | 76.75% | 78.43% | 80.83% | 62.38% | 71.47% | 56.98% | 57.47% | 74.98% | 56.65% | 57.83% | 63.35% | 56.81% | 58.67% | 60.5% | 62.09% |
| Gross Profit | 408.81M | 593.32M | 580.96M | 419.31M | 388.43M | 429.32M | 344.2M | 290.54M | 353.64M | 354.54M | 359.1M | 618.39M | 585.54M | 579.04M | 504.97M | 276.75M | 261.93M | 238.59M | 217.06M | 400.13M | 285.77M | 416.73M | 400.8M | 229.51M | 410.21M | 409.55M | 346.24M | 347.8M | 276.8M | 201M | 136.5M |
| Gross Margin % | 20.3% | 28.89% | 28.21% | 19.63% | 18.48% | 20.76% | 18.98% | 17.94% | 22.48% | 19.88% | 20.96% | 37.77% | 36.64% | 40.24% | 37.61% | 22.72% | 23.25% | 21.57% | 19.17% | 37.62% | 28.53% | 43.02% | 42.53% | 25.02% | 43.35% | 42.17% | 36.65% | 43.19% | 41.33% | 39.5% | 37.91% |
| Gross Profit Growth % | - | 2.13% | 38.55% | 7.95% | -9.52% | 24.73% | 18.47% | -17.84% | -0.25% | -1.27% | -41.93% | 5.61% | 1.12% | 14.67% | 82.47% | 5.66% | 9.78% | 9.92% | -45.75% | 40.02% | -31.43% | 3.97% | 74.64% | -44.05% | 0.16% | 18.28% | -0.45% | 25.65% | 37.71% | 47.25% | 39.29% |
| Operating Expenses | 324.49M | 504.17M | 424.26M | 272.17M | 279.4M | 261.08M | 253.95M | 266M | 322.97M | 201.85M | 204.8M | 482.08M | 467.91M | 472.54M | 405.16M | 189.73M | 175.19M | 143.31M | 153.59M | 348.08M | 187.81M | 344.03M | 359.02M | 168.97M | 328.79M | 326.76M | 261.57M | 275.5M | 221.3M | 161.8M | 110.8M |
| OpEx % of Revenue | - | 24.55% | 20.6% | 12.74% | 13.29% | 12.62% | 14.01% | 16.43% | 20.53% | 11.32% | 11.95% | 29.44% | 29.28% | 32.84% | 30.18% | 15.58% | 15.55% | 12.96% | 13.57% | 32.73% | 18.75% | 35.51% | 38.1% | 18.42% | 34.75% | 33.64% | 27.69% | 34.21% | 33.04% | 31.8% | 30.77% |
| Selling, General & Admin | 193.8M | 244.28M | 190.51M | 201.66M | 215.3M | 212.26M | 198.26M | 223.46M | 192.55M | 158.18M | 163.81M | 380.88M | 356.88M | 236.62M | 229.22M | 157.05M | 148.41M | 128.64M | 120.75M | 279.4M | 175.85M | 319.94M | 298.6M | 137.91M | 297.05M | 291.59M | 227.4M | 250.3M | 201.4M | 141.3M | 96.5M |
| SG&A % of Revenue | - | 11.89% | 9.25% | 9.44% | 10.24% | 10.26% | 10.93% | 13.8% | 12.24% | 8.87% | 9.56% | 23.26% | 22.33% | 16.44% | 17.07% | 12.9% | 13.18% | 11.63% | 10.67% | 26.27% | 17.56% | 33.02% | 31.68% | 15.03% | 31.39% | 30.02% | 24.07% | 31.08% | 30.07% | 27.77% | 26.8% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 259.89M | 233.74M | 70.51M | 64.1M | 48.82M | 55.69M | 42.54M | 130.42M | 43.67M | 40.99M | 101.2M | 111.03M | 235.92M | 175.94M | 32.68M | 26.77M | 14.68M | 39.14M | 68.68M | 11.96M | 24.09M | 60.42M | 31.06M | 31.74M | 35.18M | 34.17M | 25.2M | 19.9M | 20.5M | 14.3M |
| Operating Income | 84.32M | 89.15M | 156.7M | 147.14M | 109.03M | 168.24M | 90.25M | 24.54M | 30.38M | 151.02M | 164.52M | 136.31M | 117.63M | 106.5M | 99.81M | 87.02M | 86.74M | 95.28M | 63.46M | 52.05M | 97.95M | 72.7M | 41.78M | 60.54M | 81.43M | 82.78M | 84.67M | 72.3M | 55.5M | 39.2M | 25.7M |
| Operating Margin % | 4.19% | 4.34% | 7.61% | 6.89% | 5.19% | 8.13% | 4.98% | 1.52% | 1.93% | 8.47% | 9.6% | 8.32% | 7.36% | 7.4% | 7.43% | 7.14% | 7.7% | 8.61% | 5.61% | 4.89% | 9.78% | 7.5% | 4.43% | 6.6% | 8.61% | 8.52% | 8.96% | 8.98% | 8.29% | 7.7% | 7.14% |
| Operating Income Growth % | - | -43.11% | 6.5% | 34.96% | -35.19% | 86.41% | 267.85% | -19.24% | -79.88% | -8.21% | 20.7% | 15.88% | 10.45% | 6.71% | 14.7% | 0.31% | -8.96% | 50.13% | 21.94% | -46.87% | 34.74% | 74.02% | -30.99% | -25.65% | -1.64% | -2.23% | 17.11% | 30.27% | 41.58% | 52.53% | 61.64% |
| EBITDA | 175.95M | 181.39M | 226.11M | 211.23M | 161.06M | 217.06M | 139.96M | 71.82M | 76.78M | 194.69M | 205.51M | 176.61M | 157.59M | 141.61M | 132.6M | 119.7M | 119.15M | 128.03M | 96.31M | 83.91M | 125.16M | 101.45M | 72.94M | 91.6M | 113.17M | 117.96M | 118.84M | 97.5M | 75.4M | 59.7M | 40M |
| EBITDA Margin % | 8.74% | 8.83% | 10.98% | 9.89% | 7.66% | 10.49% | 7.72% | 4.44% | 4.88% | 10.92% | 11.99% | 10.79% | 9.86% | 9.84% | 9.88% | 9.83% | 10.58% | 11.58% | 8.51% | 7.89% | 12.5% | 10.47% | 7.74% | 9.98% | 11.96% | 12.15% | 12.58% | 12.11% | 11.26% | 11.73% | 11.11% |
| EBITDA Growth % | -18.93% | -19.78% | 7.04% | 31.15% | -25.8% | 55.09% | 94.88% | -6.47% | -60.56% | -5.27% | 16.36% | 12.07% | 11.29% | 6.79% | 10.78% | 0.46% | -6.94% | 32.94% | 14.77% | -32.96% | 23.37% | 39.09% | -20.37% | -19.06% | -4.06% | -0.74% | 21.89% | 29.31% | 26.3% | 49.25% | 62.6% |
| D&A (Non-Cash Add-back) | 91.63M | 92.25M | 69.41M | 64.09M | 52.03M | 48.82M | 49.7M | 47.28M | 46.4M | 43.67M | 40.99M | 40.31M | 39.97M | 35.1M | 32.8M | 32.68M | 32.41M | 32.76M | 32.85M | 31.87M | 27.21M | 28.75M | 31.16M | 31.06M | 31.74M | 35.18M | 34.17M | 25.2M | 19.9M | 20.5M | 14.3M |
| EBIT | 152.67M | 89.15M | 156.7M | 147.14M | 109.03M | 168.24M | 92.38M | 25.64M | 32.37M | 151.63M | 166.21M | 124.82M | 118.33M | 107.09M | 100.56M | 87.77M | 87.62M | 95.85M | 66.33M | 53.49M | 97.95M | 72.7M | 36.68M | 55.35M | 81.43M | 82.78M | 57.39M | 72.3M | 53.1M | 35.1M | 25.7M |
| Net Interest Income | -82.25M | -40.77M | -42.58M | -43.47M | -25.26M | -17.29M | -17.02M | -20.59M | -25.67M | -11.28M | -7.4M | -3.32M | -4.08M | -1.04M | -1.26M | -2.98M | -3.43M | -11.03M | -7.54M | -7.46M | -3.48M | -4.32M | -5.31M | -6.85M | -7.68M | -8.86M | -7.75M | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 1.91M | 0 | 0 | 0 | 0 | 0 | 794K | 0 | 589K | 750K | 0 | 875K | 629K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 82.25M | 40.77M | 42.58M | 43.47M | 25.26M | 19.2M | 17.02M | 20.59M | 25.67M | 11.28M | 6.61M | 4.11M | 3.38M | 1.63M | 2.01M | 742K | 5.34M | 5.71M | 7.54M | 13.48M | 3.48M | 4.32M | 5.31M | 6.85M | 7.68M | 8.86M | 7.75M | 0 | 0 | 0 | 0 |
| Other Income/Expense | -38.75M | -40.77M | -42.58M | -43.47M | -25.26M | -17.29M | -14.89M | -19.49M | -24.86M | -10.68M | -5.71M | -17.16M | -3.38M | -394K | -1.41M | -742K | -4.46M | -5.08M | -4.67M | -6.02M | -1.8M | -3.07M | -4.62M | -992K | -6.55M | -6.9M | -5.8M | 3.4M | 1.7M | 200K | 3.8M |
| Pretax Income | 45.57M | 48.38M | 114.13M | 103.67M | 83.77M | 150.95M | 75.36M | 5.05M | 5.89M | 140.34M | 158.81M | 119.15M | 114.25M | 106.11M | 98.39M | 86.28M | 82.28M | 90.19M | 56.78M | 46.03M | 96.16M | 69.63M | 37.15M | 54.36M | 74.88M | 75.88M | 51.59M | 75.7M | 60M | 42.7M | 29.5M |
| Pretax Margin % | 2.26% | 2.36% | 5.54% | 4.85% | 3.98% | 7.3% | 4.16% | 0.31% | 0.37% | 7.87% | 9.27% | 7.28% | 7.15% | 7.37% | 7.33% | 7.08% | 7.3% | 8.15% | 5.02% | 4.33% | 9.6% | 7.19% | 3.94% | 5.93% | 7.91% | 7.81% | 5.46% | 9.4% | 8.96% | 8.39% | 8.19% |
| Income Tax | 7.58M | 16.26M | 29.93M | 20.87M | 14.42M | 25.99M | 14.75M | -611K | 2.65M | 33.82M | 49.72M | 37.18M | 36.56M | 33.13M | 32.39M | 26.89M | 26.86M | 28.98M | 19.98M | 13.29M | 33.17M | 25.36M | 13.93M | 20.39M | 28.08M | 28.64M | 19.76M | 28.4M | 22.2M | 15.8M | 10.9M |
| Effective Tax Rate % | 16.64% | 33.61% | 26.22% | 20.13% | 17.21% | 17.22% | 19.57% | -12.11% | 44.92% | 24.1% | 31.31% | 31.21% | 32% | 31.22% | 32.92% | 31.17% | 32.64% | 32.14% | 35.19% | 28.88% | 34.5% | 36.43% | 37.5% | 37.5% | 37.5% | 37.74% | 38.31% | 37.52% | 37% | 37% | 36.95% |
| Net Income | 36.52M | 30.53M | 83.49M | 82.1M | 67.77M | 120.02M | 57.93M | 4.87M | 1.65M | 103.71M | 103.39M | 75.75M | 73.27M | 69.03M | 61.66M | 55.66M | 51.94M | 57.45M | 36.8M | 32.73M | 63.38M | 46.06M | 23.22M | 33.56M | 46.8M | 47.24M | 31.82M | 47.3M | 35.2M | 26.9M | 18.6M |
| Net Margin % | 1.81% | 1.49% | 4.05% | 3.84% | 3.22% | 5.8% | 3.19% | 0.3% | 0.1% | 5.82% | 6.03% | 4.63% | 4.58% | 4.8% | 4.59% | 4.57% | 4.61% | 5.19% | 3.25% | 3.08% | 6.33% | 4.75% | 2.46% | 3.66% | 4.95% | 4.86% | 3.37% | 5.87% | 5.26% | 5.29% | 5.17% |
| Net Income Growth % | -53.22% | -63.43% | 1.69% | 21.14% | -43.53% | 107.17% | 1090.55% | 195.63% | -98.41% | 0.31% | 36.49% | 3.38% | 6.15% | 11.95% | 10.79% | 7.15% | -9.6% | 56.14% | 12.41% | -48.35% | 37.6% | 98.34% | -30.81% | -28.28% | -0.95% | 48.46% | -32.72% | 34.38% | 30.86% | 44.62% | 66.07% |
| Net Income (Continuing) | 37.99M | 32.12M | 84.2M | 82.8M | 69.35M | 124.95M | 60.61M | 5.66M | 4.07M | 106.53M | 109.09M | 81.96M | 77.7M | 72.98M | 66M | 58.47M | 55.42M | 61.21M | 38.82M | 34M | 62.99M | 44.27M | 23.22M | 30.73M | 46.8M | 47.24M | 31.82M | 47.3M | 35M | 23.6M | 18.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 389K | 1.79M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 11.67M | 12.06M | 16.21M | 16.33M | 16.95M | 20.71M | 21.71M | 15.66M | 15.22M | 15.76M | 13.71M | 13.03M | 12.48M | 11.3M | 6.38M | 8.57M | 8.51M | 8.17M | 0 | 8.65M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.11 | 0.90 | 2.54 | 2.48 | 1.89 | 3.40 | 1.77 | 0.15 | 0.05 | 2.83 | 2.74 | 1.89 | 1.75 | 1.55 | 1.29 | 1.08 | 1.00 | 0.97 | 0.65 | 0.55 | 0.96 | 0.67 | 0.34 | 0.47 | 0.57 | 0.52 | 0.32 | 0.38 | 0.27 | 0.20 | 0.17 |
| EPS Growth % | -64.68% | -64.57% | 2.42% | 31.22% | -44.41% | 92.09% | 1080% | 194.12% | -98.2% | 3.28% | 44.97% | 8% | 12.9% | 20.16% | 19.44% | 8% | 3.09% | 49.23% | 18.18% | -42.71% | 43.28% | 97.06% | -27.66% | -17.54% | 9.62% | 62.5% | -15.79% | 40.74% | 35% | 17.65% | 54.55% |
| EPS (Basic) | - | 0.90 | 2.55 | 2.49 | 1.90 | 3.43 | 1.79 | 0.15 | 0.05 | 2.86 | 2.76 | 1.91 | 1.78 | 1.58 | 1.31 | 1.09 | 1.00 | 0.97 | 0.66 | 0.55 | 0.98 | 0.69 | 0.34 | 0.47 | 0.59 | 0.53 | 0.32 | 0.39 | 0.27 | 0.20 | 0.17 |
| Diluted Shares Outstanding | 33.05M | 32.95M | 32.82M | 33.16M | 35.72M | 35.34M | 32.72M | 31.63M | 32.3M | 36.52M | 37.61M | 40M | 41.72M | 44.24M | 47.81M | 50.62M | 52.94M | 55.82M | 56.53M | 60.03M | 66.09M | 68.63M | 69.62M | 72.15M | 81.2M | 91.01M | 99.63M | 124.32M | 121.82M | 119.49M | 112.89M |
| Basic Shares Outstanding | 32.94M | 32.85M | 32.72M | 32.93M | 35.5M | 35.01M | 32.42M | 31.63M | 32.08M | 36.08M | 37.25M | 39.46M | 40.96M | 43.39M | 46.92M | 50.09M | 52.66M | 55.48M | 56.25M | 59.33M | 64.62M | 67.19M | 68.83M | 71.75M | 80.27M | 90.4M | 98.81M | 120.78M | 118.15M | 116.54M | 112.04M |
| Dividend Payout Ratio | - | 200.26% | 72.54% | 71.2% | 80.81% | 33.63% | 50.68% | 586.77% | 1760.94% | 29.62% | 26.98% | 32.8% | 29.66% | 15.64% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Franchisee margin compression risk
As reported in recent financial filings, Papa John's has experienced a sustained period of top-line pressure, with revenue growth declining by 7.7% in 2026Q1, signaling that the brand's core North American market may be facing significant saturation and competitive headwinds in the delivery-centric pizza segment.
The consistent negative revenue growth suggests that the company's premium positioning is struggling to gain traction against more aggressive pricing strategies from peers. Investors should monitor whether this contraction reflects a permanent loss of market share or a temporary adjustment to the company's evolving third-party delivery strategy.
Based on the company's income statement data, gross margins have exhibited extreme volatility, plummeting from 29.9% in 2024Q3 to 16.0% in 2026Q1, which highlights the inherent sensitivity of the commissary-led supply chain to commodity price fluctuations and operational inefficiencies within the franchise network.
The sharp compression in gross margins suggests that the company is unable to fully pass through rising input costs to its franchisees without risking store-level viability. This structural vulnerability indicates that the commissary model, while a moat, acts as a significant drag on profitability during inflationary cycles.
According to the provided quarterly data, operating margins have compressed to 5.5% as of 2026Q1, demonstrating that the company is failing to achieve meaningful operating leverage as SG&A expenses continue to consume a disproportionate share of the gross profit generated by the commissary and royalty segments.
The inability to scale operating income alongside revenue suggests that corporate overhead remains bloated relative to the current store-level performance. This lack of efficiency warrants further investigation into whether management's recent investments in digital and delivery infrastructure are yielding the expected returns on invested capital.
As evidenced by the dramatic 89.8% decline in EPS growth during 2025Q3, the quality of reported net income appears highly inconsistent, with significant quarterly swings driven by non-operating items and fluctuating SG&A costs that mask the underlying operational health of the franchise business.
The presence of stock-based compensation and irregular SG&A patterns suggests that reported EPS may not be a reliable indicator of sustainable cash-generating ability. Investors should look past the headline earnings to evaluate the core royalty stream, which is currently being overshadowed by the volatility of the commissary operations.
Based on the reported figures, the primary risk to the income statement is not just consumer demand, but the potential for a localized collapse in franchisee profitability, as evidenced by the 1.49% net margin which leaves little buffer for operators facing rising labor and commodity costs.
Short-sellers would likely focus on the unsustainable nature of the current commissary pricing model, which appears to be squeezing the very franchisees that drive the company's royalty revenue. If the current margin pressure persists, the company may face a wave of store closures that would permanently impair its long-term growth trajectory.
Quick answers to the most common questions about buying PZZA stock.
For fiscal year 2025, Papa John's International, Inc. (PZZA) reported total revenue of $2.05B. This represents a 470.3% increase compared to $360.1M in 1996.
Papa John's International, Inc. (PZZA) is profitable, generating $30.5M in net income for the fiscal year ending 2025 with a net profit margin of 1.5%.
Papa John's International, Inc. (PZZA) reported an operating income of $89.1M, resulting in an operating profit margin of 4.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Papa John's International, Inc. (PZZA) generated $593.3M in gross profit for the year, representing a gross profit margin of 28.9%. This demonstrates the company's core pricing power and production efficiency.