In the latest chapter of the pizza wars, Papa Johns announced it is closing hundreds of North America locations during a fourth-quarter earnings call on Thursday. It will also cut about 7% of its workforce.

In that call, Papa Johns’ chief financial officer and president of North America Ravi Thanawal said the company plans to shutter a total of 300 underperforming restaurants in North America “that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant.”

The closures will happen by the end of 2027, with the first two-thirds closed by year end. According to the company’s annual report, it had about 3,500 locations at the end of 2025, per CNN.

Papa Johns International (PZZA) was trading down over 8% at the end of Thursday’s trading day.

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Fast Company has reached out to Papa Johns for a list of locations that will be closing.

The news comes just three weeks after Pizza Hut said it, too, was closing 250 “underperforming” locations in 2026 as fast-casual restaurant chains struggle, with consumer spending dropping amid higher inflation and a high cost of living. Pizza Hut plans to shut those 250 locations, which amount to about 3% of its U.S. locations, in the first six months of this year. The chain cited competition from rival Domino’s Pizza and declining store sales.

Speaking of Domino’s—unlike Pizza Hut and Papa Johns, its earnings beat expectations, and its success proves people are still eating tomato pies, even as the competition falters. What’s the secret sauce?

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