GoKawiilPapa Johns Hands Mexico Operations to KM Capital as U.S. Sales Slide
Papa Johns has named KM Capital, a Mexican investment firm founded in 1986, as its new franchise partner in the country, handing it control of 44 existing locations. The firm plans to invest further in operations, branding and expansion there, while Papa Johns' international division has now posted seven consecutive quarters of same-store sales growth, up 1.5% in Q2, even as U.S. sales fell 8.3% over the same period.
GoKawiil's interpretation of the reporting above, not reported fact.
The deal underscores how Papa Johns is increasingly relying on overseas markets to offset a prolonged domestic slump, with CEO Todd Penegor trying to replicate international strategies—prioritizing strong markets and trimming weak locations—back in the U.S. With roughly 6,000 restaurants across 50 countries, a strong showing in Mexico could become a rare bright spot for a brand otherwise struggling to turn around its core American business.
- KM Capital now controls 44 Papa Johns locations in Mexico and plans further investment.
- Papa Johns' international same-store sales rose 1.5% in Q2, marking seven straight quarters of growth.
- U.S. same-store sales dropped 8.3% in the same period, highlighting a widening gap between domestic and international performance.
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Published there as: “Papa Johns Sales Are Down in the U.S. — But It Just Found a New Growth Partner on the Other Side of the Border”
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