Papa John’s Blames Middle East On Delayed Store Openings

Papa John’s Blames Middle East On Delayed Store Openings:

Western companies and franchises showing support for Israel during the conflict with Hamas in Gaza have faced boycotts across the Middle East. McDonald’s warned last week that “misinformation” triggered boycotts and had caused “meaningful impacts” on its Middle East segment. Now, Papa John’s International Inc. is the latest to reveal war impacts.

On Monday, Papa John’s wrote in a corporate update that global net store openings were 210 in the full year 2023, down 14% from its expected 245 target.

“210 net unit openings for the full year 2023 with 57 net unit openings in North America and 153 net unit openings in international markets.” 

The pizza chain blamed “lower-than-anticipated net unit openings” on “unanticipated international restaurant closures in the fourth quarter including 10 UK franchised restaurants; 12 international units that were re-classified as closed locations in the fourth quarter through a review of temporary restaurant closures; restaurant openings moved into 2024; and restaurant opening delays due to the ongoing conflict in the Middle East.”

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