Papa John's shutters 300 underperforming stores, cuts 7% staff to ignite turnaround.

The company cited restaurants not meeting brand expectations, lacking a clear path to financial improvement, or where sales can be transferred to nearby locations. In addition to store closures, Papa John's also reduced its corporate workforce by about 7%, impacting roughly 700 employees.

These moves follow a challenging fourth quarter marked by a 5.4% decline in same-store sales in North America, attributed to a weak consumer backdrop and aggressive promotional activity. CEO Todd Penegor is spearheading a turnaround effort focused on menu improvements and operational adjustments.

This news comes as rival Pizza Hut also announced plans to close around 250 locations, while Domino's Pizza reported positive sales growth.