Papa John’s Shares Drop as Customers Cut Back on Orders

Papa John’s International Inc. shares slid after sales shrunk more than expected and the pizza chain’s outlook for the year also trailed estimates, suggesting customers are increasingly skimping on its fast-food pizza.

Its North America same-store sales — revenue generated by existing restaurants compared with the prior year — fell 5.4% in the fourth quarter. They were dragged down by both the restaurant chain’s owned and franchised locations, Papa John’s said in Thursday statement. That was more than the 4.3% decline expected by analysts.