Papa John’s Closing Hundreds of Underperforming Stores

Papa John’s International shares slid after sales shrunk more than expected and the pizza chain’s outlook for the year also trailed estimates, suggesting customers are increasingly skimping on its fast-food pizza.

Its North America same-store sales — revenue generated by existing restaurants compared with the prior year — fell 5.4% in the fourth quarter. They were dragged down by both the restaurant chain’s owned and franchised locations, Papa John’s said in Thursday statement. That was more than the 4.3% decline expected by analysts.

Overall revenue also declined to $498 million, about $20 million short of what analysts were anticipating.

“North America results reflected a weak consumer backdrop and elevated promotional environment,” Papa John’s Chief Executive Officer Todd Penegor said in a statement.