Papa John’s is moving ahead with a major downsizing plan that will eliminate hundreds of underperforming restaurants across North America, with dozens of locations already closed this year as the pizza chain faces mounting competitive and financial pressures.
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The company closed 44 stores during the first quarter of 2026 across 17 states, according to an analysis of company financial filings. The largest concentration of closures occurred in Texas, California, Florida and Arizona, while additional shutdowns took place in states including Michigan, North Carolina and Virginia.
The closures represent the first phase of a broader strategy announced earlier this year. In February, Papa John’s said it planned to close about 300 North American restaurants by the end of 2027. Company executives said most of the affected locations are franchise-owned stores that are more than a decade old and generate less than $600,000 in annual sales.
Papa John’s leadership argues that removing weaker-performing locations will strengthen the overall business, as always.
Papa John’s The Hundredth Store To Cut Costs To Make More Money
Chief Financial Officer Ravi Thanawala previously said the company expects the closures to increase average unit volumes by at least 3% and improve the financial health of franchise operators. The company also believes franchisees can redirect resources toward stronger restaurants and expansion opportunities in priority markets.
The store closures come as the pizza industry confronts several challenges. Restaurant operators continue to face higher labor, supply chain and inflation-related costs. At the same time, pizza chains are competing with a growing range of dining options for consumer spending.
The company’s financial performance has reflected those pressures. Papa John’s shares have fallen about 21% since the start of 2026 and have declined more than 69% over the past five years. The company has also reduced its corporate workforce, cutting roughly 7% of corporate positions as part of its effort to streamline operations.
Despite the reductions, Papa John’s maintains that the majority of its restaurants continue to perform well and generate solid returns. Company executives describe the closures as a targeted effort to improve profitability rather than a retreat from the market, with the goal of creating a healthier and more sustainable restaurant system over the long term.