Papa John’s International, Inc. (NASDAQ:PZZA) shares rose Wednesday after the company revealed a major refranchising move.
The firm said longtime franchisee Pie Investments took over 85 stores formerly run by Colonel’s Limited, LLC, and committed to launching 52 more outlets by 2030.
The acquired restaurants cover markets around Washington, D.C. and Baltimore. Pie Investments now runs over 150 Papa John’s restaurants. The group said it aims to own 250 total outlets by 2030.
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The prior operator, Colonel’s Limited, LLC, traced its partnership with Papa John’s back to 1993.
Its leadership built a strong reputation by embracing early digital ordering and fueling pizza delivery growth.
Papa John’s paid tribute to that legacy as it handed control to Pie Investments.
Leadership’s Take On Expansion
“Chris Patel’s growth mindset and entrepreneurial spirit are exactly the qualities Papa John’s is looking to emphasize among our franchisees,” said Ravi Thanawala, the company’s CFO and North America president. Thanawala praised Patel’s track record in acquiring restaurants and boosting profitability.
“Papa John’s well-known commitment to quality continues to make the brand an attractive investment for entrepreneurs,” said Chris Patel, COO and partner at Pie Investments. He added the team plans to leverage enhanced tools to improve operations and deliver better experiences to pizza lovers.
Strategic Significance
This refranchising deal underscores Papa John’s focus on expanding its footprint through trusted operators.
The plan should accelerate growth, especially in key Northeast and Mid-Atlantic hubs. It also lets Papa John’s tap franchisee expertise while scaling up more efficiently.
Investors in pizza chains may now also watch 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 the analyst consensus estimate of 41 cents.
For fiscal 2025, the company expects systemwide sales to rise 1% to 2% (previously 2% to 5%).
North American comparable sales are expected to be down 2% to 2.5% (previously flat to up 2%).
Price Action: PZZA shares were trading higher by 0.58% to $41.44 premarket at last check Wednesday.
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