Papa John’s to close 300 stores amid slowing pizza sales

Papa John’s is launching a major turnaround strategy to tackle slowing sales. The company plans to close 300 underperforming locations by the end of 2027.

The pizza chain has also reduced its corporate workforce by 7%.

Shares of Papa John’s fell nearly 9% following the announcement.

The move to shutter stores comes as it reported a difficult fourth quarter, with profits plummeting 42% to $8.6 million and revenue missing forecasts. CEO Todd Penegor noted that several restaurants suffered low sales due to shifting consumer patterns and required excessive investment.

Not alone
Pizza sales in the US have lagged behind the broader fast-food market for years. As consumers pull back on spending, many prefer $5 meals over a $20 pizza.

Several well-known chains, including Pieology Pizzeria and Bertucci’s Brick Oven Pizza & Pasta, have recently filed for bankruptcy. Pizza Hut owner Yum Brands began exploring a sale in 2025.

Meanwhile, Domino’s claims to be gaining market share by attracting customers with pizza value deals priced at $9.99.