Papa John's

PZZA · Nasdaq · Consumer Discretionary · Financials, fiscal 2016 to 2025

PZZA · Last close · October 26, 2026

$18.23

Papa John's revenue fell 0.3% to $2.1 billion in fiscal 2025. Its operating margin was 4.3%, down from 7.6% a year earlier. Free cash flow was $61 million, up 79.5%. It paid out $61 million in dividends and buybacks, 100% of free cash flow. The diluted share count rose 0.4%.

PAPA JOHN’S INTERNATIONAL, INC. Latest fiscal year ended December 28, 2025 10-K filed February 26, 2026 · 0001628280-26-011965 Updated October 11, 2026

Revenue

$2.1B

0.3%

Operating margin

4.3%

3.3 pts

Net income

$30M

63.4%

Free cash flow

$61M

79.5%

Return on capital

19.3%

17.7 pts

Market cap

$603M

Oct 26 close

P/E

23.1x

On $0.79 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Papa John's had no current portion of long-term debt in 2021–23 (its debt was all due in later years), so that part counts as zero.

What Papa John's does

Papa John's operates and franchises pizza restaurants, mostly for delivery and carryout. At December 28, 2025, there were 6,083 Papa Johns restaurants in 50 countries and territories: 475 owned by the company and 5,608 run by franchisees. It says most of its sales occur through digital channels.

Papa John's has four reportable segments: Domestic Company-owned restaurants, North America franchising, North America commissaries and International. Company-owned restaurants earn money from retail sales of pizza and other food and drinks. Franchising earns royalties and fees from franchisees in the United States and Canada. Commissaries supply ingredients and other goods to restaurants. Of the North American restaurants, approximately 13% of restaurants were company-owned. The company-owned restaurants in its comparable base averaged $1.3 million in annual sales.

Papa John's says it competes with other quick-service restaurants, especially in pizza, for customers, workers, franchisees and restaurant sites. In December 2025 it began a new business transformation program, called the Enterprise Transformation Plan, after finishing a plan to reshape its international business.

Its biggest risks, as it describes them

Intense competition in the quick-service restaurant and pizza market for customers, workers and franchisees.
Risks from its franchise model, and from its international franchisees, who face their own difficulties.
Its turnaround efforts in the United Kingdom could stall and hurt its results.
Higher costs for food ingredients and labor, and its reliance on a sole or limited number of suppliers for some items.
Food safety and quality concerns that could damage its brand and sales.

From Papa John's's annual report on Form 10-K, filed February 26, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2025, earnings per share fell 11.6% a year and net income 12.6% a year, while buybacks cut the share count by 13%.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Papa John's yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Papa John's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Papa John's fiscal 2025 free cash flow of $61M, net cash of −$728M at December 28, 2025 and 33 million diluted shares, from its filings. The scenarios are fitted to Papa John's: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -0.8% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 11%: 9% for a business of moderate risk (Restaurants), plus 1 point as a smaller company, worth $603M, plus 1 point for unsteady results (revenue fell in two of the last five years); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target. A negative value means Papa John's net debt is larger than what that scenario's cash flows are worth today.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 28, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Papa John's's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 12% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 11% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 10% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $18.23
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Papa John's earnings per share of $0.79 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 23.1×, the middle of Papa John's own P/E today, its peers' median and its sector's median (Papa John's own P/E today) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 12%, 11% and 10%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 28, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Wendy's, Dutch Bros, Shake Shack.

Earnings growth in the years ahead (% a year) Starts at Papa John's revenue growth over the last 3 years, -0.8% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $18.23
Value at this multiple, against the last close: —
Papa John's P/E at the last close: 23.1×

Company	Last close	Earnings per share	P/E today
Shake ShackSHAK	$64.89	$0.95	68.3×
Dutch BrosBROS	$42.02	$0.72	58.4×
Papa John'sPZZA	$18.23	$0.79	23.1×
Wendy'sWEN	$6.19	$0.66	9.4×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	71	47	41	38	35
Debt incl. finance leases	502	623	791	772	763
Net debt (negative means net cash)	432	576	750	734	728
Net debt to EBITDA	2.0x	3.6x	3.5x	3.2x	4.0x
Debt to equity	—	—	—	—	—
Interest coverage	8.8x	4.1x	3.9x	3.8x	2.2x
Current ratio	0.9x	0.9x	0.8x	0.8x	0.8x
Quick ratio	0.8x	0.8x	0.6x	0.7x	0.7x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

No officer, director or 10% owner of Papa John's reported buying or selling its shares on the open market between October 27, 2025 and October 26, 2026.

From Form 4 filings with the SEC. Grants, option exercises and shares withheld for tax aren't counted. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Fail	Pass	Fail
Share count didn't rise	Pass	Pass	Fail
Gross margin rose	—	—	—
Revenue rose relative to assets	Pass	Fail	Fail
F-score	6 of 8	7 of 8	4 of 8
Accruals ratio	−12.8%	−2.6%	−11.1%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Papa John's side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Papa John's	FY25	−0.3%	4.3%	3.0%	19.3%	4.0x	4
Dave & Buster's	FY25	−1.4%	4.1%	−4.8%	4.1%	4.3x	6	Compare
Wendy's	FY25	−3.1%	15.8%	11.2%	7.8%	6.3x	4	Compare
Dutch Bros	FY25	27.9%	9.8%	3.3%	11.9%	1.3x	5	Compare
Shake Shack	FY25	15.4%	4.3%	3.9%	9.6%	−0.6x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	1,714	1,783	1,663	1,619	1,813	2,068	2,102	2,136	2,059	2,054
Revenue growth	4.7%	4.1%	−6.8%	−2.6%	12.0%	14.1%	1.6%	1.6%	−3.6%	−0.3%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	164	151	32	24	90	168	109	147	157	89
Net income	103	102	2	5	58	120	68	82	84	30
Diluted EPS (US$)	2.74	2.83	0.08	−0.24	1.28	0.12	1.89	2.48	2.54	0.90
Diluted shares (millions)	38	36	32	32	33	35	36	33	33	33
Cash flow
Cash from operations	150	135	92	62	186	185	118	193	107	126
Capital expenditure	56	53	42	38	36	69	78	77	72	65
Free cash flow	95	82	50	24	151	116	39	116	34	61
Dividends paid	28	31	29	29	29	40	55	58	61	61
Share buybacks	122	210	158	0	3	72	125	210	2	0
Acquisitions	13	0	0	0	0	1	1	6	0	0
Stock-based compensation	10	10	10	15	16	17	18	18	10	15
Balance sheet at fiscal year end
Cash and short-term investments	16	22	33	28	130	71	47	41	38	35
Debt incl. finance leases	300	467	621	377	365	502	623	791	772	763
Total assets	513	556	596	731	873	886	864	875	889	838
Total liabilities	494	655	894	790	881	1,053	1,134	1,318	1,302	1,270
Shareholders' equity	−4	−122	−319	−332	−282	−188	−286	−459	−430	−445
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	9.6%	8.5%	1.9%	1.5%	5.0%	8.1%	5.2%	6.9%	7.6%	4.3%
Net margin	6.0%	5.7%	0.1%	0.3%	3.2%	5.8%	3.2%	3.8%	4.0%	1.5%
Free cash flow margin	5.5%	4.6%	3.0%	1.5%	8.3%	5.6%	1.9%	5.5%	1.7%	3.0%
Return on capital	39.6%	36.3%	6.2%	15.5%	—	122.5%	32.0%	38.5%	36.9%	19.3%
Return on equity	—	—	—	—	—	—	—	—	—	—
Return on assets	20.4%	19.1%	0.4%	0.7%	7.2%	13.7%	7.8%	9.4%	9.5%	3.5%
Net debt to EBITDA	1.4x	2.3x	7.5x	4.9x	1.7x	2.0x	3.6x	3.5x	3.2x	4.0x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Papa John's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Papa John's.