Papa John's International Inc. (NASDAQ: PZZA) experienced a significant pre-market plunge of 5.11% on Thursday following the release of its fourth-quarter and full-year 2025 financial results.

The pizza chain reported quarterly revenue of $498.179 million, missing the analyst consensus estimate of $515 million. This represents a 6.1% decline from the same period last year. While adjusted earnings per share met expectations at $0.34, the company's North American comparable sales decreased by 5%, reflecting a weak consumer backdrop and an elevated promotional environment. Full-year net income fell sharply by 61.9% to $32 million.

Adding to investor concerns, the company provided a cautious outlook for 2026. Papa John's expects global system-wide restaurant sales to be flat to down low single digits, with North America comparable sales projected to decline between 2% and 4%. Management attributed the quarterly revenue decline partly to the refranchising of 85 domestic company-owned restaurants. An analyst note from Stephens suggested the stock was likely pressured as results came in below the buy-side's expectations.