Papa John’s International, Inc. (NASDAQ:PZZA) Shares rose on Wednesday after the company unveiled a major refranchising measure.
The company said longtime franchisee Pie Investments has acquired 85 stores previously operated by Colonel’s Limited, LLC, and committed to launching an additional 52 stores by 2030.
The acquired restaurants cover markets around Washington, DC and Baltimore. Pie Investments now manages more than 150 Papa John’s restaurants. The group said it aims to own a total of 250 outlets by 2030.
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The previous operator, Colonel’s Limited, LLC, traced its association with Papa John’s to 1993.
The company’s leadership has built a strong reputation by embracing early digital orders and driving growth in pizza delivery.
Papa John’s paid tribute to that legacy by transferring control to Pie Investments.
Leadership view of expansion
“Chris Patel’s growth mindset and entrepreneurial spirit are exactly the qualities Papa John’s wants to emphasize among our franchisees,” said Ravi Thanawalathe company’s CFO and president of North America. Thanawala praised Patel’s track record in acquiring restaurants and increasing profitability.
“Papa John’s well-known commitment to quality continues to make the brand an attractive investment for entrepreneurs,” said Chris PatelCOO and partner at Pie Investments. He added that the team plans to use enhanced tools to improve operations and provide better experiences for pizza lovers.
Strategic significance
This refranchising agreement underlines Papa John’s focus on growing its footprint through trusted operators.
The plan aims to accelerate growth, especially in key hubs in the Northeast and Mid-Atlantic. It also brings the expertise of Papa John’s franchisees and can scale more efficiently.
Investors in pizza chains can now also take a look Domino’s Pizza Inc. (NYSE:DPZ) And Yum! Brands Inc. (NYSE:YUM).
Recent earnings
Earlier this month, the company reported third-quarter adjusted earnings per share of 32 cents, missing analysts’ consensus estimate of 41 cents.
For fiscal 2025, the company expects systemwide revenue to increase 1% to 2% (previously 2% to 5%).
Comparable sales in North America are expected to decline 2% to 2.5% (previously flat to up 2%).
Price promotion: PZZA shares were trading 0.58% higher at $41.44 premarket at last check Wednesday.
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Image by retail photographer via Shutterstock
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