Papa John’s announced Thursday it plans to close hundreds of stores across the United States due to weak sales.
The company said that about 300 underperforming restaurants in North America will close by the end of 2027, CNN reported.
The company said it would cut about 200 jobs this year when announcing the news on an earnings call.
There is no word yet on which plants will close or when they will be closed.
By the end of 2025, Papa John’s will have approximately 3,500 stores.
A few weeks ago, Pizza Hut announced that it would close approximately 250 stores.
Papa John’s chief financial officer Ravi Tanavala said the restaurants planned to close “have not met brand expectations or lack a clear path to sustainable financial improvement.”
The company also plans to close locations where it can shift sales to nearby restaurants.
The company also laid off about 7% of its 700-person workforce.
Papa John’s reported a 5.4% decline in North American same-store sales last quarter.
For the industry, growth in fast-food pizza sales has been essentially flat over the past two years, according to the Wall Street Journal.
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