PAPA JOHNS INTERNATIONAL INC Q1 FY2026 earnings call

• Transformation plan: Continuing to execute transformation to be best pizza makers, taking disciplined approach beyond price, meeting customers where they are, improving four-wall margins, elevating fleet, supporting franchisees. • International performance: Strong results with 3.6% comparable sales growth, strong in focus markets like UK (11% comp growth), Middle East (9% comp growth), Asia Pacific (5% comp growth). • North America performance: Comparable sales down mid-single digits, resilience in core pizza, loyalty customers important, pizza mix shift issue. • Value proposition and innovation: Meeting customers with popular offers, leveraging CRM platform to increase customer engagement, rebuilt innovation pipeline with new menu platforms like Pan Pizza, oven-toasted sandwiches, cheesy garlic bread. • Marketing and technology: Reinstated advertising co-ops in US, working with Google Cloud to transform digital ordering experience, rolled out advanced voice and group ordering, piloting new POS solution. • Franchisee partnership: Optimizing North American supply chain, captured $7 million of benefits in Q1, on track to realize at least $25 million savings this year, confident of at least $60 million of supply chain productivity opportunities by 2028

International business: Delivered 3.6% comparable sales growth, six consecutive quarters of positive comps. In UK, comparable sales growth accelerated to 11% in Q1; Middle East up 9%; Asia Pacific up 5%. North America: Comparable sales down mid-single digits in Q1, primarily due to declining orders and lower new customer acquisition. Core pizza had flat year-over-year pizza volumes (excluding severe weather), pies per order up 5%. Loyalty customers make up ~30% of customer base, generating 5% higher ticket per order and ordering twice as often as non-loyalty members. Pizza mix shifted to smaller non-specialty pizzas, resulting in low single-digit declines in overall pizza sales (excluding severe weather). Outside of pizza, comparable sales pressured by declines in size, desserts, and lower new customer acquisition. Global system-wide restaurant sales $1.2 billion, down 3% in constant currency. Total consolidated revenue $479 million, down 8%. Consolidated adjusted EBITDA decreased $2 million to ~$48 million. North America commissary segment adjusted EBITDA margins 5%, a decline of 230 basis points. Domestic company-owned restaurants delivered four-wall EBITDA of $16.6 million and a four-wall margin of 11.9%, an improvement of 140 basis points

• Global system-wide sales: Range between flat and low single-digit declines in 2026. • North America comparable sales: Still expect down 2% to 4% in 2026, expect top-line momentum in second half with sequential improvements. April North American comparable sales trending slightly worse than Q1 year-over-year but consistent with Q1 on three-year stack. • International comparable sales: Continue to build on transformation momentum, expect increase between 2% and 4%. • Re-franchising: Currently in negotiations to re-franchise 29 restaurants in Southeast, expect to close in Q3 2026, which will reduce 2026 consolidated revenues by ~$9 million and benefit adjusted EBITDA by ~$1 million. • Consolidated adjusted EBITDA: Between $200 and $210 million in 2026. Plan to invest ~$18 million in supplemental marketing and franchisee subsidies, $13 million of G&A savings outside of marketing. Line of sight to achieve at least $30 million of total cost savings by end of 2027. Stock-based compensation ~$5 million per quarter. Interest between $35 and $40 million, adjusted DNA between $70 and $75 million, capital expenditures between $70 and $80 million. GAAP effective tax rate in range of 30 to 34%. Diluted shares outstanding ~$33 million. • Restaurant development: On track to open 40-50 gross new restaurants in North America in 2026, expect 200 closures in North America; internationally, expect to open 180-220 gross new restaurants, with closures representing 5%-6% of international system

Q: Question on same-store sales guidance, why not de-risk and why three-year trend.

A: Brian Bittner's question on same-store sales guidance. Todd and Robbie responded, saying year-over-year comparisons soften in back half, looking at normalized business, de-risked by three-year stacked basis, with initiatives like innovation, partnerships to support.

Q: Question on new menu categories and complexity.

A: Alex with Jeffries' question. Ravi responded, focusing on operational excellence, training, design of new products to be simple to execute, like Pan Pizza with one pass through oven, sandwiches easy build, removing previous rhythm breakers.

Q: Question on decomposing same-store sales between check and traffic and weather impact.

A: Todd Brooks' question. Ravi responded, check was flat in Q1, sales contract from transaction standpoint, transaction loss in orders with one or no pizzas, multi-pie orders growing, weather impact ~40 basis points, build off three-year stack.

Q: Question on competition and third party vs first party delivery.

A: Sarah Santori's question. Response included competition from large chains and QSR industry, third party still outperforming, competitive intensity in aggregators, adjusting price and promotion, focused on winning across channels while balancing volume, customer count, and margins