Papa John's is facing a challenging period, marked by financial headwinds and a strategic pivot to re-energize its brand and sales. While the company is pushing forward with ambitious plans, a decline in domestic sales and store closures indicate the difficult market it is navigating.
The pizza chain's recent financial results show a mixed picture. First-quarter 2025 earnings beat analyst expectations, yet North American comparable sales still declined by 2.7%. The company also reported a number of net store closures in North America and internationally. These figures highlight a struggle to maintain momentum in a highly competitive market where consumers are tightening their belts and seeking value.
In response, Papa John's is actively implementing its "Back to Better" strategy. This includes a renewed focus on product innovation, with recent launches like the Croissant Pizza and making the popular Shaq-a-Roni a permanent menu item.
Marketing efforts are also being revamped with the new "Better Get You Some" campaign, which aims to connect with customers on a more emotional level. The company is also heavily investing in technology, partnering with Google Cloud to leverage AI for personalized customer experiences, improved delivery logistics, and a more efficient ordering process. The goal is to drive customer engagement and loyalty, which are seen as key to reversing recent sales trends.