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Papa John's plans to close 300 underperforming restaurants in North America by the end of 2027 as part of a major cost-cutting and restructuring effort, the pizza chain announced Thursday.

Approximately 200 locations are expected to shutter by the end of this year, with the remaining closures spread over the next three years.

Chief Financial Officer Ravi Thanawala told Wall Street analysts that the restaurants set to close are those "not meeting brand expectations or lack a clear path to sustainable financial improvement."

He added that some closures involve locations where Papa John's can "effectively transfer sales to a nearby restaurant."

The chain, which has roughly 6,000 restaurants in about 50 countries and territories, did not specify which locations would be affected.

According to CNN, Papa John's currently operates around 3,500 restaurants in North America.

The restructuring comes amid ongoing challenges for Papa John's in boosting domestic sales. In February, the company reported 2025 revenues of $2.1 billion, largely flat compared with the previous year, along with declining profits.

Same-store sales in North America fell 5.4% in the fourth quarter, reflecting "a weak consumer backdrop and elevated promotional environment," CEO Todd Penegor said.

Papa John's Cuts 7% of Corporate Workforce

In addition to closing restaurants, Papa John's has reduced its corporate workforce by about 7%, Thanawala noted, without specifying when the layoffs occurred or whether further cuts are planned.

As of March 2025, the company employed 104,000 workers globally, including both corporate staff and restaurant employees, CBS News reported.

Penegor has emphasized a menu-focused turnaround for the chain, aiming to improve product quality and offerings.

Papa John's has recalibrated ovens for better cooking and recently introduced a new pan pizza to attract more customers.

The closures at Papa John's follow similar moves by other pizza chains. Earlier this month, Pizza Hut announced it would close roughly 250 locations in the first half of the year while parent company Yum! Brands evaluates the brand's strategy.

Domino's Pizza, by contrast, has continued to see growth, reporting a 3.7% increase in same-store sales in the fourth quarter thanks to value offerings and a new marketing campaign.

Papa John's stock, which traded at $31.85 on Thursday, has fallen 31% over the past year.