Papa Johns is closing 200 restaurants in 2026 as part of a turnaround plan amid declining sales and economic challenges.

As part of a turnaround strategy in the face of declining sales and a challenging economic environment, Papa John's plans to close roughly 300 underperforming restaurants in North America by the end of 2027, with an additional 200 planned for 2026. Citing low consumer spending and competition, the chain reported a 5.4% decline in same-store sales in the fourth quarter. Locations that don't meet brand standards or don't have a way to become profitable are targeted for closure, and sales are anticipated to move to neighboring stores. Along with reducing its corporate workforce by roughly 7%, the company is also simplifying its menu and discontinuing some items. While Domino's reported higher sales growth, rival Pizza Hut has taken similar actions.