Papa John’s UK has actually reported a sales boost, with recent figures showing a 7% growth in comparable sales across the region, but the US arm isn’t doing so well
Papa John’s has announced plans to permanently close approximately 300 locations across North America by the end of 2027, as the pizza giant moves to cut loose underperforming branches.
Crucially for British pizza fans, the closures are targeted at the US and Canadian markets and do not affect the UK. While the chain’s North American sector struggles, Papa John’s UK has actually reported a sales boost, with recent figures showing a 7% growth in comparable sales across the region.
The decision to shutter hundreds of stores comes as company bosses revealed the “negative” financial reality facing specific locations. Speaking on a fourth-quarter earnings call, CFO Ravi Thanawala explained that the targeted restaurants were suffering from “negative EBITDA” (earnings before interest, taxes, depreciation, and amortisation) – effectively meaning they are losing money on a day-to-day basis.
“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement,” Thanawala said.
The strategy will see the pizza chain close roughly 200 of these locations in 2026, with the remaining 100 set to shut their doors by the end of 2027.
CEO Todd Penegor emphasised that the move is intended to improve the overall health of the brand’s franchise system. “We believe these closures will further strengthen the system,” Penegor stated, noting that the company is shifting its focus toward profitable growth and modernizing its operations.
While the news marks a significant retreat for the brand in its home market, the picture is starkly different across the Atlantic. The company’s international sales have remained robust, particularly in the UK, where a recent “transformation” effort was credited with driving the 7% sales uptake.
By contrast, the picture is starkly different across the Atlantic, where the UK arm of the business is enjoying a resurgence. Fresh from a “transformation” effort that saw the closure of underperforming sites in 2024, Papa John’s UK has bounced back to post a 7% jump in comparable sales for the fourth quarter of 2025.
Executives have credited this turnaround to a successful brand relaunch, better partnerships with delivery aggregators, and a renewed focus on customer service that has driven the division’s strongest quarterly performance since the pandemic.
Managing Director Chris Phylactou recently confirmed that the UK division is “no longer losing money” and has pivoted back to expansion mode.
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