v3.26.1
Segment Information
 6 Months Ended
Jun. 28, 2026
Segment Reporting [Abstract]  
Segment Information
12. Segment Information
We have four reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries, and International operations. The Domestic Company-owned restaurants segment consists of the operations of all Domestic Company-owned restaurants and principally generates revenues from retail sales of pizza and other food and beverage products. The North America franchising segment consists of our franchise sales and support activities and derives its revenues from sales of franchise and development rights and the collection of royalties from our franchisees located in the United States and Canada. The North America commissaries segment consists of the operations of our regional dough production and product distribution centers in the United States and Canada and derives its revenues principally from the sale and distribution of food and paper products to Domestic Company-owned and franchised restaurants in the United States and Canada. The International segment consists of distribution sales to franchised Papa Johns restaurants located in the UK and our franchise sales and support activities, which derive revenues from sales of franchise and development rights and the collection of royalties from our International franchisees, as well as the operations of all Company-owned restaurants located in the UK. International franchisees are defined as all franchise operations outside of the United States and Canada. Our reportable segments are distinct business units that provide different products or services. Separate management of each segment is required because each business unit is subject to different operational issues and strategies. Certain administrative and capital costs are allocated to each of our segments based upon predetermined rates or estimated resource usage.
All other business units that do not meet the quantitative or qualitative thresholds for determining reportable segments, which are not operating segments, we refer to as “All Other”. These consist of operations that derive revenues from franchise contributions to marketing funds and information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms.
Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM evaluates performance of and allocates resources to our segments based on segment adjusted EBITDA. Segment adjusted EBITDA represents Net income before Net interest expense, Income tax expense, Depreciation and amortization, Stock-based compensation expense, and other adjustments that vary from period to period, including certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business. During the annual budget and forecasting process, the CODM uses segment adjusted EBITDA to allocate resources (including employees, property, and financial or capital resources) to the segments. The CODM regularly reviews trends in segment adjusted EBITDA on at least a quarterly basis to evaluate the profitability of the segments and to make resource allocation decisions. When our CODM reviews balance sheet information, it is at a consolidated level.
Segment Results
The tables below present our operating results by segment. The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM. A reconciliation to Company results is included in the following section.
Three Months Ended June 28, 2026
(In thousands)Domestic Company-Owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalTotal
Revenues from external customers$138,936$33,037$211,021$45,040$428,034
Intersegment revenues—23144,808—45,039
Segment revenue$138,936$33,268$255,829$45,040$473,073
Less segment expenses (a):
COS - Product Costs$43,840$—$172,865$12,953$229,658
COS - Salaries & Benefits45,748—31,4732,23879,459
COS - Other (b,c)
33,747—20,1818,64562,573
General & Administrative8,9669,5288,9768,50935,979
Other Segment Expenses (d)
———5,3245,324
Segment adjusted EBITDA$6,635 $23,740 $22,334 $7,371 $60,080 
Three Months Ended June 29, 2025
(In thousands)Domestic Company-Owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalTotal
Revenues from external customers$175,797$35,359$214,846$44,184$470,186
Intersegment revenues—1,24452,813—54,057
Segment revenue$175,797$36,603$267,659$44,184$524,243
Less segment expenses (a):
COS - Product Costs$53,196$—$190,554$13,073$256,823
COS - Salaries & Benefits57,203—30,0611,96489,228
COS - Other (b,c)
45,586—16,3789,37071,334
General & Administrative9,9489,76011,0149,28240,004
Other Segment Expenses (d)
———4,8584,858
Segment adjusted EBITDA$9,864 $26,843 $19,652 $5,637 $61,996 
Six Months Ended June 28, 2026
(In thousands)Domestic Company-Owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalTotal
Revenues from external customers$278,607$67,490$415,621$88,267$849,985
Intersegment revenues—46586,962—87,427
Segment revenue$278,607$67,955$502,583$88,267$937,412
Less segment expenses (a):
COS - Product Costs$85,817$—$346,638$24,478$456,933
COS - Salaries & Benefits92,178—64,3654,433160,976
COS - Other (b,c)
68,436—39,28316,877124,596
General & Administrative17,65618,86217,51616,50070,534
Other Segment Expenses (d)
———10,46510,465
Segment adjusted EBITDA$14,520 $49,093 $34,781 $15,514 $113,908 
Six Months Ended June 29, 2025
(In thousands)Domestic Company-Owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalTotal
Revenues from external customers$346,592$70,911$427,765$83,295$928,563
Intersegment revenues—2,503104,271—106,774
Segment revenue$346,592$73,414$532,036$83,295$1,035,337
Less segment expenses (a):
COS - Product Costs$105,333$—$380,024$24,220$509,577
COS - Salaries & Benefits115,180—60,0433,531178,754
COS - Other (b,c)
90,485—32,65916,440139,584
General & Administrative20,69819,32320,30618,12678,453
Other Segment Expenses (d)
———9,9599,959
Segment adjusted EBITDA$14,896 $54,091 $39,004 $11,019 $119,010 
___________________________________
(a)    Segment expenses exclude depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business (see reconciliation that follows).
(b)    During the current year, the Company updated its internal cost allocation methodology for certain centrally incurred costs. As a result, a portion of costs previously allocated to the Domestic Company‑owned restaurants segment is now reflected within Unallocated corporate expenses and the North America commissaries segment. The change is prospective and does not affect total reported expenses. Prior period segment information has not been recast. For the three months ended June 28, 2026, this allocation methodology update resulted in a $2.1 million decrease in COS - Other for our Domestic Company-owned restaurants, a $0.6 million increase in COS - Other for our North America commissaries segment, and a $1.5 million increase in Unallocated corporate expenses as compared to the prior year comparable period. For the six months ended June 28, 2026, this allocation methodology update resulted in a $4.2 million decrease in COS - Other for our Domestic Company-owned restaurants, a $1.2 million increase in COS - Other for our North America commissaries segment, and a $3.0 million increase in Unallocated corporate expenses as compared to the prior year comparable period.
(c)    The segment expense category “COS - Other” includes delivery expenses, Company-owned restaurant advertising costs, occupancy costs, technology costs, aggregator fees, insurance, and other costs of sales.
(d)    Other Segment Expenses represent all operating expenses that are not included in the segment significant expense categories. Other Segment Expenses include advertising fund expenses and other operating expenses.
Reconciliation of Segment Results to Company Results

The following table reconciles total revenue from our segments to total Company revenues and total adjusted EBITDA from our segments to Income before income taxes:

Three Months EndedSix Months Ended
(In thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Total Segment revenue$473,073 $524,243 $937,412 $1,035,337 
All Other Revenue (a)
65,558 73,761 135,942 148,092 
Elimination of intersegment revenue(56,234)(68,838)(112,348)(135,954)
Total revenues$482,397 $529,166 $961,006 $1,047,475 
Three Months EndedSix Months Ended
(In thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Total Segment adjusted EBITDA$60,080 $61,996 $113,908 $119,010 
All Other adjusted EBITDA (a)
2,940 9,233 6,973 19,397 
Unallocated corporate expenses, adjusted (b)
(10,301)(18,614)(20,399)(36,168)
Other income/(expense) adjustments to reconcile to income before income taxes (c)
(29,532)(28,125)(56,537)(53,784)
Net interest expense(9,516)(10,584)(19,199)(20,663)
Income before income taxes$13,671 $13,906 $24,746 $27,792 
___________________________________
(a)    As noted in the commentary above, All Other revenue and All Other adjusted EBITDA is derived from business units that do not meet the quantitative or qualitative thresholds for determining reportable segments. These business units consist of operations that derive revenues from franchise contributions to marketing funds and from franchise contributions to information systems and related services used in restaurant operations, including our point-of-sale system, online and other technology-based ordering platforms. Our largest marketing fund is PJMF, which is designed to operate at break-even for the purpose of designing and administering advertising and promotional programs for all participating Domestic restaurants. Technology-based franchisee fees are meant to offset the costs of building, operating, and depreciating technology that supports franchisee operations. As such, these fees may vary from period to period, as they are designed to operate near break-even over time when including the impact of depreciation.
(b)    Unallocated corporate expenses represent administrative fees incurred by the restaurant support centers, including information systems and related services, corporate salaries and bonuses, and other corporate costs. These expenses are adjusted for depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business (see reconciliation that follows). The decrease in Unallocated corporate expenses for the comparable periods primarily relates to a reduction in supplemental advertising costs and a decrease in management compensation.
(c)    Other (income)/expense adjustments represent depreciation and amortization, stock-based compensation expense, and certain general and administrative expenses and other items that do not reflect normal, recurring expenses necessary to operate our business. As such, management excludes these items from the evaluation of segment adjusted EBITDA. For the periods above, the adjustments include:
Three Months EndedSix Months Ended
(In thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Depreciation and amortization$19,248 $18,819 $36,977 $37,162 
Stock-based compensation expense3,057 3,824 7,466 7,493 
Refranchising transaction expense (gain), net45 — (808)— 
Restructuring costs3,438 2,451 7,548 4,631 
Other costs (a)
3,744 3,031 5,354 4,498 
Other (income)/expense adjustments$29,532 $28,125 $56,537 $53,784 
___________________________________
(a)For the three and six months ended June 28, 2026, represents costs associated with project-based strategic initiatives that are not related to our ongoing operations.
For the three and six months ended June 29, 2025, other costs is comprised of the following:
i.Losses on disposal of equipment incurred in connection with the termination of a COVID-era program that pre-purchased store equipment due to supply chain challenges;
ii.Costs associated with project-based strategic initiatives that are not related to our ongoing operations; and
iii.Costs incurred, net of anticipated insurance recoveries, arising from tornadoes that damaged the Texas QC Center as well as the restaurant support center and QC Center in Louisville, Kentucky.
Disaggregation of Revenue
Our segments earn revenue from both external and internal customers. No single external customer accounted for 10% or more of our total revenues. Our intersegment revenues primarily represent revenue earned by our QC Centers from the sale of food and paper products to our Company-owned restaurants and collection of technology fees and marketing fees from our Company-owned restaurants. We account for intercompany sales as if the sales were to third parties and subsequently eliminate the activity. The accounting policies of our segments are the same as those described in Note 2. Significant Accounting Policies.
In the following tables, revenues are disaggregated by major product line. The tables also include a reconciliation of the disaggregated revenues by the reportable segment to total revenues:
Three Months Ended June 28, 2026
(In thousands)Domestic Company-owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalAll OtherElimination of Intersegment RevenueTotal
Company-owned restaurant sales$138,936 $— $— $3,246 $— $— $142,182 
Franchise royalties and fees— 33,268 — 13,548 — (231)46,585 
Commissary sales— — 255,829 19,797 — (44,808)230,818 
Other revenues— — — 3,497 21,535 (3,573)21,459 
Advertising funds revenue— — — 4,952 44,023 (7,622)41,353 
Total revenues$138,936 $33,268 $255,829 $45,040 $65,558 $(56,234)$482,397 
Three Months Ended June 29, 2025
(In thousands)Domestic Company-owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalAll OtherElimination of Intersegment RevenueTotal
Company-owned restaurant sales$175,797 $— $— $3,192 $— $— $178,989 
Franchise royalties and fees— 36,603 — 12,943 — (1,244)48,302 
Commissary sales— — 267,659 19,730 — (52,813)234,576 
Other revenues— — — 3,409 24,301 (4,574)23,136 
Advertising funds revenue— — — 4,910 49,460 (10,207)44,163 
Total revenues$175,797 $36,603 $267,659 $44,184 $73,761 $(68,838)$529,166 
Six Months Ended June 28, 2026
(In thousands)Domestic Company-owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalAll OtherElimination of Intersegment RevenueTotal
Company-owned restaurant sales$278,607 $— $— $6,709 $— $— $285,316 
Franchise royalties and fees— 67,955 — 26,673 — (465)94,163 
Commissary sales— — 502,583 37,838 — (86,962)453,459 
Other revenues— — — 6,987 43,497 (7,237)43,247 
Advertising funds revenue— — — 10,060 92,445 (17,684)84,821 
Total revenues$278,607 $67,955 $502,583 $88,267 $135,942 $(112,348)$961,006 
Six Months Ended June 29, 2025
(In thousands)Domestic Company-owned RestaurantsNorth America FranchisingNorth America CommissariesInternationalAll OtherElimination of Intersegment RevenueTotal
Company-owned restaurant sales$346,592 $— $— $6,278 $— $— $352,870 
Franchise royalties and fees— 73,414 — 25,447 — (2,503)96,358 
Commissary sales— — 532,036 35,752 — (104,271)463,517 
Other revenues— — — 6,693 49,380 (9,180)46,893 
Advertising funds revenue— — — 9,125 98,712 (20,000)87,837 
Total revenues$346,592 $73,414 $532,036 $83,295 $148,092 $(135,954)$1,047,475