Popular pizza chain battles key customer problem

For Todd Penegore the mission is clear.

“First and foremost, we need to make sure we are living up to our brand promise of better ingredients, better pizza in everything we do,” Penegore, president and CEO of Papa John’s International  (PZZA) , said during the chain’s fourth-quarter-earnings call last month.

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵

Penegore told analysts that 2024 was a year of transformation and realignment throughout the world’s third-largest pizza delivery company.

“We navigated a dynamic operating and competitive environment, while setting in motion near-term strategic priorities,” he said. “We’re encouraged by the progress and momentum we’re seeing as we enter 2025.”

Penegore called Q4 consistent with the Louisville, Ky., company’s expectations. Comparable sales, those from outlets open at least a year, improved over Q3.

The Papa John’s restaurant at 343 Grand Street, Manhattan, on Sunday, Feb. 25, 2024. The CEO is pleased with the company’s progress after a realignment.Shelby Knowles-Bloomberg via Getty Images

“While we recognize we still have work to do, we see many opportunities ahead to drive the business forward,” he said.

Penegore and company are in a tough sector: Restaurant consultants Aaron Allen & Associates note that “the $160 billion-plus global pizza industry is not for the faint of heart.”

“The U.S. pizza industry is among the most saturated in the world with one pizzeria for every [5.100] people,” the consultant said.

“That’s not slowing down chains with hustle, though,” it added. “In fact, the fast movers are cannibalizing others with a ferocity that should be cause for alarm for those not investing in the arms race that is shaping up.”

Domino’s (DPZ) is feeling the burn as its largest franchisee, Domino’s Pizza Enterprises, said in February that it would close 205 low-performing locations, including 172 in Japan. Other pizza chains have also shuttered locations.

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

More Restaurants

Half of U.S. adults are likely to cut back their spending at fast-food restaurants if tariffs lead to higher prices, according to a survey by CivicScience.

Penegore said Papa John’s emphasized amplifying its marketing message.

“Pizza is a game played nationally but won locally,” Penegore said. “And when we effectively reach the local consumer, especially in a value-focused environment, we win.”

Earlier this month Papa John’s introduced its “Meet the Makers” campaign, which is dedicated to highlighting its team members and the quality of its ingredients. The company also plans to make additional investments in its Papa Dough loyalty program.

Source link

Latest

Golf Can Prove Habit Forming And Possibly Addictive

Note: This article does not suggest that golf is...

In seconds, AI builds proteins to battle cancer and antibiotic resistance

In the last year, there has been a surge...

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

U.S. President Donald Trump and Canada's Prime Minister Mark...

Make Metal Injection Yours: Take Our Quick Survey!

At Metal Injection, you're more than just a reader...

Newsletter

spot_img

Don't miss

Golf Can Prove Habit Forming And Possibly Addictive

Note: This article does not suggest that golf is...

In seconds, AI builds proteins to battle cancer and antibiotic resistance

In the last year, there has been a surge...

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

U.S. President Donald Trump and Canada's Prime Minister Mark...

Make Metal Injection Yours: Take Our Quick Survey!

At Metal Injection, you're more than just a reader...

Royal Enfield Hunter 350 vs Triumph Speed T4 comparison review – Introduction

The revitalised Hunter 350 goes against the repriced Triumph...
spot_imgspot_img

Golf Can Prove Habit Forming And Possibly Addictive

Note: This article does not suggest that golf is physically addictive, nor does it intend to minimize addiction or the experiences of those going...

In seconds, AI builds proteins to battle cancer and antibiotic resistance

In the last year, there has been a surge in proteins developed by AI that will eventually be used in the treatment of everything...

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

U.S. President Donald Trump and Canada's Prime Minister Mark Carney talk during a family photo at the G7 Summit in Kananaskis, Alberta, Canada, ...