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Papa John's Expands Footprint With Major Refranchising Deal - Papa John's International (NASDAQ:PZZA)
Papa John's CEO Todd Penegor advances refranchising by selling 85 locations to franchisee Chris Patel as company-owned stores underperform with 2.5% sales decline.
- Papa John's International is shifting out of restaurant operations and into franchising as a strategic, data-driven refranchising strategy.
- With same-store sales lagging, company-owned locations have underperformed franchised locations for at least two years, posting a 2.5% decline versus 1.3% growth through the first three quarters.
- The plan calls for shrinking the company-owned base from 545 locations to mid-single-digit levels, mirroring the franchising model favored by McDonald's.
- Recently the chain sold 85 locations in Baltimore and Washington, D.C. to franchisee Chris Patel of Pie Investments, converting corporate units to franchise ownership.
- Chris Patel's Pie Investments already owns 150 Papa John's locations and aims to expand to 250, illustrating strong franchisee growth ambitions.
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29 Articles
29 Articles
Papa Johns hands 85 US stores to Pie Investments in refranchise deal
Papa Johns International has transferred ownership of 85 restaurants to Pie Investments under a refranchising arrangement.The post Papa Johns hands 85 US stores to Pie Investments in refranchise deal appeared first on Verdict Food Service.
Coverage Details
Total News Sources29
Leaning Left0Leaning Right3Center1Last UpdatedBias Distribution75% Right
Bias Distribution
- 75% of the sources lean Right
75% Right
C 25%
R 75%
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