Todd Penegor, former Wendy’s CEO, has recently stepped into the CEO role at Papa Johns, facing significant challenges. The pizza chain reported a 4% decline in same-store sales for the second quarter, while competitor Domino’s saw a 4.8% increase. This drop came despite increased spending on national marketing and a new campaign, which failed to attract more customers.
Penegor emphasized the need to draw more customers to Papa Johns and suggested potential improvements to the loyalty program, Papa Rewards. The company is also considering closing more underperforming restaurants, having already shut down 17 locations in the first half of the year, offset by 31 new openings. By comparison, Domino’s closed just three locations while opening 55 new ones.
Executives blame the sales decline on a focus on premium items, which once boosted market share but now seem misaligned with current consumer spending habits. Penegor indicated a potential shift back to more balanced local marketing strategies to better compete with regional differences and emphasize value-focused promotions.
Improving the loyalty program and optimizing the company’s technology to support it are also key priorities. The company recently updated its app to improve navigation and better showcase deals. Penegor acknowledged the work ahead, aiming to restore growth and balance at Papa Johns.
