PZZA Investor Alert: Levi & Korsinsky Notifies Investors of Investigation Into Papa John's International (PZZA)

Papa John's told investors in August 2025 that it had returned North America to positive comparable sales growth. Its Q2 2026 update disclosed an 8.3% North American comparable-sales decline, a cut to full-year adjusted EBITDA guidance, and a suspended dividend.

NEW YORK--(BUSINESS WIRE)--Papa John's International (NASDAQ: PZZA) shares dropped after the Company's second quarter 2026 operating update disclosed North American comparable sales down 8.3%, revenue of $482.4 million (down 8.8% year-over-year), a reduction in full-year adjusted EBITDA guidance, and the suspension of the quarterly dividend. If you lost money on your Papa John's investment, you are encouraged to submit your losses for review here. You may also contact Joseph E. Levi, Esq. via email at [e-mail] or by telephone at [phone].

The timeline: On the August 7, 2025 second quarter earnings call, Chief Executive Officer Todd Allan Penegor told investors, "we've successfully returned the company to positive comparable sales and transaction growth in North America." Chief Financial Officer Ravi Thanawala reported total revenues for that quarter of $529 million, an increase of 4%. One year later, revenue came in at $482.4 million and North American comparable sales were down 8.3%.

Full-year adjusted EBITDA guidance was reduced to $180-$190 million from $200-$210 million -- a cut of approximately $20 million at the midpoint. The quarterly dividend was suspended. Levi & Korsinsky is investigating potential securities law violations concerning statements made to Papa John's investors.

Shareholders who purchased PZZA and suffered losses may request a free case evaluation now or call [phone].

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.

Frequently Asked Questions About the PZZA Investigation

Q: Who is conducting the PZZA investigation? A: Levi & Korsinsky, LLP is investigating potential securities claims on behalf of investors who purchased PZZA securities. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.

Q: Which statements are being investigated? A: The investigation concerns whether Papa John's statements regarding North American comparable-sales performance and its full-year outlook were materially misleading. Management stated in August 2025 that the Company had returned to positive North American comparable sales and transaction growth. The Company’s Q2 2026 update later disclosed an 8.3% decline in North American comparable sales, a reduction in full-year adjusted EBITDA guidance, and suspension of its quarterly dividend.

Q: Who is eligible to participate in the PZZA investigation? A: Investors who purchased PZZA stock or securities and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: What if I already sold my PZZA shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought PZZA and sold at a loss may still participate in the investigation.

Q: What do PZZA investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [e-mail] or [phone].

Q: What does it cost me to participate? A: There is no upfront cost. Securities investigations and any resulting actions are generally handled on a contingency basis -- no retainer and no out-of-pocket costs.

Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions.

Q: What if I live outside the United States? A: U.S. securities investigations generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

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