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Former Wendy’s CEO Todd Penegor has been with Papa Johns for all of about a week. But it’s clear the task ahead for the burger chain’s former longtime leader, who saw Wendy’s cross 7,000 units and achieve 12 straight years of same-store sales growth, is going to include multiple hills to climb.
Papa Johns Q2 same-store sales declined 3.6 percent (negative 4.2 percent for domestic corporate units and negative 3.4 percent for franchises), which marked the weakest result for the company in five years. The sales gap between Papa Johns and Domino’s widened by 100 basis points, per BTIG, from 740 in Q1 to 840, and Pizza Hut U.S. is coming off a negative 1 percent Q2 result, “suggesting incremental share loss,” analyst Peter Saleh said.