Cautious Analyst Sentiment on Papa John’s (PZZA) As Refranchising and Cost Reductions Drive Strategy

Papa John’s International, Inc. (NASDAQ:PZZA) is one of the best restaurant stocks to buy now.

As of January 6, 2026, roughly 40% of analysts are bullish on Papa John’s International, Inc. (NASDAQ:PZZA) with a median price target of $48.00, amid the company’s strategic and expansion initiatives. The price target translates into an upside potential of 20.40%. The most recent analyst update came from Jefferies on December 15, 2025, where it reiterated its “Hold” rating on the stock with a $45 price target.

Jefferies’ reaffirmation followed Stifel’s update in the previous month. Stifel also reiterated its “Hold” rating on Papa John’s International, Inc. (NASDAQ:PZZA) with a $42 price target. The update came after analysis of the company’s 10-Q filing. The investment firm updated its financial model to incorporate the company’s planned cost-saving initiatives for 2026. The model now also includes management’s plans to refranchise a significant portion of its domestic company-owned restaurants over the next two years.

In November, Papa John’s International, Inc. (NASDAQ:PZZA) made a strategic refranchising announcement, refranchising 85 restaurants in the Washington, D.C., and Baltimore markets to Pie Investments, led by Chris Patel. This came after the retirement of longtime franchise partner William Freitas. Within the same announcement, Papa John’s also announced that it plans to open 52 additional restaurants by 2030 across the Greater Philadelphia, Washington, D.C., and Baltimore markets.

For fiscal 2026, the firm projects EBITDA of approximately $205 million, representing approximately 4% year-over-year growth. The firm’s EBITDA forecast is below the Street consensus estimate of $213 million. Additionally, Stifel mentioned that the EBITDA metric could vary if Papa John’s International, Inc. (NASDAQ:PZZA) makes an incremental investment in its marketing fund. The company has already invested $25 million in marketing so far in 2025. The firm’s projections include a $10 million incremental investment in marketing.

Papa John’s International, Inc. (NASDAQ:PZZA), an American pizza restaurant company, operates one of the world’s largest pizza restaurant chains with about 6,000 restaurants in approximately 50 countries and territories.

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