An American favorite pizza chain is quietly disappearing from communities across the country. Papa Johns is following through on its plan to close about 300 North American stores. Dozens of locations are shuttering in the first quarter, primarily in core Sun Belt states.
A recent analysis of Papa Johns financial filings by Fast Company found that 44 stores closed across 17 states. The highest concentration of closures occurred in Texas, California, Florida, and Arizona.
Multiple location closures have also been identified in Michigan, North Carolina, and Virginia. The strategic downsizing reflects broader economic headwinds hitting the fast-food sector.
Papa Johns shutters nearly 50 locations across 17 states as competition intensifies https://t.co/xxZfaNyEJ8 pic.twitter.com/ofUzqUgGgr
— New York Post (@nypost) June 11, 2026
The pizza brand first announced in February that hundreds of underperforming restaurants would cease operations by the end of 2027. The company described the locations as being primarily franchise-owned and more than a decade old. They were generating less than $600,000 in annual sales volumes.
Company leadership believes the restructuring will ultimately improve the system's financial health. "We believe these closures will further strengthen the system, increasing AUVs by at least 3% and improve franchisee health by allowing franchisees to reallocate resources towards operational excellence in their remaining restaurants and open units in priority markets," Papa Johns CFO Ravi Thanawala previously said.
Thanawala defended the overall brand portfolio during the announcement. He noted that the majority of the company's restaurants worldwide have "performed well over the years and delivered 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."
Despite these optimization efforts, the company's stock has faced significant downward pressure. Shares of Papa Johns International were down roughly 21% year to date through Wednesday's close. Over the past five years, shares of Papa Johns International have fallen more than 69%.
In addition to the Q1 store closures, filings showed that Papa Johns laid off 7% of its corporate workforce. Franchisees across the fast-food industry are facing severe headwinds from inflation, supply chain expenses, and labor costs. Pizzerias nationwide are also dealing with stiff competition from Mexican restaurants and coffee shops.
Other major pizza chain competitors are making similar strategic moves amid weakening consumer demand. Rival Pizza Hut is closing hundreds of locations across the country. Its parent company, Yum! Brands, is reportedly looking into a potential sale of the struggling chain.