Lawsuit alleges Papa John's International, Inc. made misleading statements to investors from August 7, 2025 to August 5, 2026; lead plaintiff motions are due November 2, 2026

LOS ANGELES, Oct. 29, 2026 /PRNewswire/ -- The Law Offices of Frank R. Cruz today announced a class action lawsuit against Papa John's International, Inc. ("Papa John's" or the "Company") (NASDAQ: PZZA) on behalf of investors who acquired the Company's securities from August 7, 2025 to August 5, 2026. Filed on September 2, 2026, the case is Hale v. Papa John's International, Inc., et al., U.S. District Court for the Western District of Kentucky, Case No. 3:26-cv-00685.

If you lost money on Papa John's International, Inc. securities, submit your Papa John's International, Inc. loss information by November 2, 2026 to learn about participating in the lawsuit.

Papa John's International, Inc. class action timeline

• Class period begins: August 7, 2025
• Class period ends: August 5, 2026
• Complaint filed: September 2, 2026
• Lead plaintiff motion deadline: November 2, 2026

What happened?

On August 6, 2026, Papa Johns issued its second quarter 2026 financial results, reporting an 8.3% decline in North American comparable sales. The Company also reduced its fiscal 2026 outlook, expecting "global system-wide sales to decline between 2% and 4% compared to last year and adjusted EBITDA between $180 million to $190 million," and suspended its quarterly dividend. During the related conference call, CEO Todd Allan Penegor stated that "it's clear that our transformation is taking longer than expected" and "we must execute better and move faster."

On this news, Papa Johns' stock price fell $5.11 or 17.18%, to close at $24.64 per share on August 6, 2026, thereby injuring investors.

What is the Papa John's International, Inc. lawsuit about?

The Papa John's International, Inc. securities lawsuit alleges that, between August 7, 2025 and August 5, 2026, defendants made materially false and/or misleading statements and failed to disclose material adverse facts about Papa John's International, Inc.'s business, operations, and prospects. Specifically, the complaint alleges defendants failed to disclose that: (1) Defendants created the false impression that they possessed reliable information pertaining to the effectiveness and ongoing impact of the Company's strategic transformation as well as their resulting projected growth outlook for the North American region; (2) Defendants also minimized the risk of cautious consumer sentiment, competition woes, promotional seasonality, and more general macroeconomic fluctuation; (3) In truth, Papa Johns' strategic transformation was taking considerably longer than the projections had suggested and the Company was simply ill equipped to "meet the consumer where they're at;"; and (4) as a result, defendants' positive statements about Papa John's International, Inc.'s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

"According to the complaint filed against Papa John's International, Inc., the Company, among other things, did not disclose that Defendants created the false impression that they possessed reliable information pertaining to the effectiveness and ongoing impact of the Company's strategic transformation as well as their resulting projected growth outlook for the North American region. The November 2, 2026 deadline is a key date for Papa John's International, Inc. investors who want a voice in how this case moves forward," said Frank R. Cruz of The Law Offices of Frank R. Cruz.

What should Papa John's International, Inc. investors do now?

The Law Offices of Frank R. Cruz can help Papa John's International, Inc. investors evaluate potential claims to recover their losses.

Investors who want to serve as lead plaintiff in the Papa John's International, Inc. class action must file a motion with the Court by November 2, 2026. For more information, visit the Papa John's International, Inc. case page, email info@frankcruzlaw.com, or call 310-914-5007.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

Investors may retain counsel of their choice. Papa John's International, Inc. investors who bought during the class period may also take no action and remain absent class members. No class has been certified yet in the Papa John's International, Inc. case.

Questions and answers about the Papa John's International, Inc. lawsuit

Who is eligible? Investors who bought Papa John's International, Inc. securities between August 7, 2025 and August 5, 2026 and lost money may be class members, and may seek lead plaintiff appointment by November 2, 2026.

What does a lead plaintiff do? The lead plaintiff is appointed by the court to represent all class members and direct the Papa John's International, Inc. class action.

Must I be lead plaintiff to share in a recovery? No, Papa John's International, Inc. investors can take no action and remain absent class members.

How are attorneys' fees handled? The Law Offices of Frank R. Cruz works on contingency, so Papa John's International, Inc. investors pay no attorneys' fees up front. Any attorneys' fees and litigation expenses come only from a recovery, if there is one, and require court approval.

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Related links

• Papa John's International, Inc. case page, The Law Offices of Frank R. Cruz
• Complaint: Hale v. Papa John's International, Inc., et al., U.S. District Court for the Western District of Kentucky
• press release
• Papa John's International, Inc. SEC filings index, EDGAR
• The Law Offices of Frank R. Cruz

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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SOURCE The Law Offices of Frank R. Cruz, Los Angeles