Alert: Claims focus on alleged misrepresentations about Papa John’s North American comparable sales, which the action says slid from a 1% gain to an 8.3% decline while management projected improving trends.

NEW YORK, Sept. 16, 2026 /PRNewswire/ — Levi & Korsinsky, LLP reminds purchasers of Papa John’s International, Inc. (NASDAQ: PZZA) securities of a pending securities class action brought on behalf of shareholders who acquired stock between August 7, 2025 and August 5, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

On August 6, 2026, Papa John’s reported an 8.3% decrease in North American comparable sales, suspended its dividend, and cut its 2026 outlook from a 3% decline in North American comparable sales at the midpoint to a 6-8% annual decline. PZZA closed down $5.11 per share, about a 17.18% single-day drop, at $24.64. Motions for lead plaintiff must be filed with the Court by November 2, 2026.

Comparable Sales Figures

A franchised pizza system lives or dies on comparable sales, the measure of transactions and ticket at restaurants open more than a year. The action contends that this single operating metric deteriorated in every reported period after the Class Period began, moving from a 1% North American gain in the second quarter of 2025 to an 8.3% decline disclosed on August 6, 2026, while investors were told the transformation was gaining traction.

Innovation Pipeline Execution and the Cautious Consumer

As pleaded, management repeatedly tied projected improvement to a rebuilt innovation pipeline, reimagined sides at accessible price points, and a barbell value strategy expected to recruit lapsed and new customers. When the Company reset guidance on August 6, 2026, it attributed the shortfall to soft consumer trends and its own turnaround execution, acknowledging it had not been able to “meet the consumer as much as [it] should have” and that the rebuilt innovation pipeline was “not bringing in as many new customers” as expected.

Alleged Comparable Sales Impact by the Numbers

• North America comparable sales up 1% in Q2 2025, with international up 4%
• North America comparable sales down 3% in Q3 2025
• North America comparable sales down 5% in Q4 2025, driven by a 5.5% transaction decline; global system-wide restaurant sales of $1.23 billion
• 2026 guidance issued at a 2% to 4% North American comparable sales decline, later reset to a 7% annual decline at the midpoint
• 8.3% North American comparable sales decrease reported August 6, 2026, alongside the dividend suspension
• 2026 consolidated adjusted EBITDA guided to between $200 million and $210 million

“The complaint raises serious questions about whether investors received accurate information about the pace at which North American comparable sales were deteriorating. A guidance reset from a 3% decline at the midpoint to a 6-8% annual decline is a substantial change, and shareholders are entitled to ask when that risk became known internally.” — Joseph E. Levi, Esq.

Submit your information now or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until November 2, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the PZZA Lawsuit

Q: How much did PZZA stock drop? A: Shares fell approximately 17.18%, a decline of $5.11 per share, after the Company disclosed an 8.3% decrease in North American comparable sales, the suspension of its dividend, and a reduction in its 2026 outlook to a 6-8% annual decline. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the PZZA lawsuit allege? A: The complaint alleges Papa John’s International, Inc. made materially false or misleading statements regarding the effectiveness of its strategic transformation and its ability to stabilize growth against a cautious consumer market during the Class Period. When the 8.3% North American comparable sales decline, dividend suspension, and reduced 2026 outlook were disclosed, the stock price declined sharply.

Q: When did Papa John’s International, Inc. allegedly mislead investors? A: The Class Period runs from August 7, 2025 to August 5, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my PZZA shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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