Papa Johns Intl

Papa John's Q2 revenue fell 8.8% and system-wide restaurant sales dropped 4.8%, with net income of $8.7 million; the company suspended its dividend, cut EBITDA guidance to a $185 million midpoint and plans to close 200–250 North American stores in 2026. Adjusted EPS rose to $0.46 and gross, operating and net margins ticked up modestly, but the overall metrics prompted a sharp share selloff. Jim Cramer favored Domino's over Papa John's given the latter's operational weaknesses, though Domino's also showed mixed results. » More on finance.yahoo.com

S&P Global Ratings cut Papa John’s issuer rating from BB- to B+ and its bond rating from B+ to B; the outlook remains stable. Like-for-like sales in North America fell 8.3% in Q2 and S&P expects about an 8% decline in 2026. S&P forecasts an adjusted leverage ratio of roughly 4.5x through 2026 and sees the 2026 EBITDA margin at about 10.3%, while Papa John’s is suspending its dividend, investing an additional $35m in marketing and plans to close 300 underperforming restaurants. Further downgrades could occur if leverage remains above 5.0x permanently. » More on de.investing.com

Analysts at Stephens and Benchmark downgraded Papa John’s after the company suspended its dividend, cut its full-year guidance and acknowledged a delayed operational recovery. In Q2 revenue fell 8.8% to $482.4 million, North America comparable sales dropped 8.3% and adjusted EBITDA was flat at $52.7 million. The operating margin of 4.8% was well below expectations; management views the transformation as a longer-term process. Papa John’s ended its strategic review without a near-term sale and lowered its EBITDA forecast for 2026/27 to $180–190 million. » More on de.investing.com