Papa John's to Close 300 Stores by 2026 Amid Declining Sales and Consumer Spending

Sammi BurkeFri, February 27, 2026 at 5:14 AM UTC

0

(Photo by Bloomberg on Getty Images)

A beloved pizza takeout joint is facing the wrath of decreased consumer spending, with hundreds of store closings ahead.

Papa John's announced earlier today during a regular earnings call that upwards of 300 underperforming storefronts across North America will shutter by the end of next year, according to CNN.

Approximately two-thirds of those restaurants will no longer exist by the end of 2026, with most locations chosen because they're “not meeting brand expectations or lack a clear path to sustainable financial improvement," while others have close enough neighboring stores "where [the brand] can effectively transfer sales to."

Is Your Local Shop on the List?

It's not yet clear what locations are on the chopping block, but the number amounts to approximately eight and a half percent of pizzerias, with somewhere around 3,500 open locations at the end of 2025. Along with reducing the number of stores, Papa John's laid off about seven percent of its corporate employees.

Advertisement

Per the outlet, the announcement followed a more than five percent decline in sales across the country, which CEO Todd Penegor said “reflected a weak consumer backdrop and elevated promotional environment.”

In the hopes of heading back uphill for the brand, Penegor is turning to major menu upgrades, with Papa John's recently debuting a new pan pizza that the brand boldly believes is worthy of a Michelin star and testing out a wellness-forward dough, not to mention bringing back a decade-old fan-favorite.

Brick-and-Mortar Locations Are Closing Left and Right

Papa John's decision closely follows a similar move from Pizza Hut, which announced just weeks ago that it would be shuttering almost as many stores for the same reasons.

It's not only pizza joints feeling the heat, though—Wendy's is on track to close even more stores, and even grocery and gaming staples are struggling to stay open as consumer habits shift, with some mournful shoppers likening the store closures to a "bloodbath."

However, commenters didn't seem to be surprised by the direction Papa John's is taking, with many citing decreasing pizza size and quality in recent purchases. "...this should be no surprise," one declared, while others even admitted to opting for frozen pizza instead.

This story was originally published by Parade on Feb 27, 2026, where it first appeared in the News section. Add Parade as a Preferred Source by clicking here.

Original Article on Source

Source: “AOL Entertainment”