Popular pizza chain battles key customer problem

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Penegore told analysts that 2024 was a twelvemonth of translation and realignment passim the world's third-largest pizza transportation company.

"We navigated a dynamic operating and competitory environment, portion mounting successful question near-term strategical priorities," helium said. "We're encouraged by the advancement and momentum we're seeing arsenic we participate 2025."

Penegore called Q4 accordant with the Louisville, Ky., company's expectations. Comparable sales, those from outlets unfastened astatine slightest a year, improved implicit Q3.

"While we admit we inactive person enactment to do, we spot galore opportunities up to thrust the concern forward," helium said.

Penegore and institution are successful a pugnacious sector: Restaurant consultants Aaron Allen & Associates enactment that "the $160 billion-plus planetary pizza manufacture is not for the faint of heart."

"The U.S. pizza manufacture is among the astir saturated successful the satellite with 1 pizzeria for each [5.100] people," the advisor said.

"That’s not slowing down chains with hustle, though," it added. "In fact, the accelerated movers are cannibalizing others with a ferocity that should beryllium origin for alarm for those not investing successful the arms contention that is shaping up."

Domino’s (DPZ) is feeling the pain arsenic its largest franchisee, Domino's Pizza Enterprises, said successful February that it would adjacent 205 low-performing locations, including 172 successful Japan. Other pizza chains person besides shuttered locations.

In addition, the Trump administration’s tariff plans are making beingness hard for fast-food chains.

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Half of U.S. adults are apt to chopped backmost their spending astatine fast-food restaurants if tariffs pb to higher prices, according to a survey by CivicScience.

Penegore said Papa John's emphasized amplifying its selling message.

"Pizza is simply a crippled played nationally but won locally," Penegore said. "And erstwhile we efficaciously scope the section consumer, particularly successful a value-focused environment, we win."

Earlier this period Papa John's introduced its "Meet the Makers" campaign, which is dedicated to highlighting its squad members and the prime of its ingredients. The institution besides plans to marque further investments successful its Papa Dough loyalty program.