Pizza chain Papa John’s said it plans to close hundreds of underperforming restaurants in North America by the end of next year.

“We have identified approximately 300 underperforming restaurants in North America that are not meeting brand expectations or do not have a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” Papa John’s said. CFO Ravi Thanawala he said last week during the company’s fourth-quarter earnings call.

Thanawala described the locations as mostly franchise-owned, more than a decade old and generating less than $600,000 in annual sales (AUV). He said most of the restaurants will close by the end of 2027, with about 200 closings this year.

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The locations slated to close are mostly franchise-owned and more than a decade old. (Luke Sharrett/Bloomberg via Getty Images)

“We believe these closings will further strengthen the system, increase AUVs by at least 3% and improve franchisee health by allowing franchisees to reallocate resources toward operational excellence in their remaining open restaurants and units in priority markets,” Thanawala said.

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He also said that most of the company’s restaurants worldwide “have performed well over the years and generated strong returns for both corporate and franchise owners,” and that the strategic closure of underperforming restaurants is “among the most impactful actions we can take to improve restaurant profitability and fleet health.”

Papa John’s operated more than 3,500 restaurants in North America as of the fourth quarter of 2025. (Brandon Bell/Getty Images)

The company reported a 5.4% decline in same-store sales in the fourth quarter, which CEO Todd Penegor said “reflects a weak consumer environment and a heightened promotional environment.”

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Papa John’s operated 3,523 restaurants in North America as of the fourth quarter of 2025. It opened 96 new locations in its most recent fiscal year.

Rival pizza chain Pizza Hut, too recently announced which will close 250 US locations by June.

The closures will affect “underperforming” Pizza Hut restaurants. (Michael Nagle/Bloomberg via Getty Images)

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Ranjith Roy, the chief financial officer of Pizza Hut’s corporate parent, Yum! Brands, said during an earnings call that the closings will primarily target Pizza Hut’s weakest-performing restaurants as part of a broader effort to modernize the chain.