In a Monday interview with CNBC’s Jim Cramer, Papa John’s CEO Todd Penegor described how the pizza franchise tweaked its methods to focus on value and draw in customers, amid broad worries about the state of the consumer.
“We had a ‘better get you some’ campaign that really featured a more premium offering at the time when the consumer was really looking for value,” Penegor said. “So, we pivoted quickly, you know, you look at our fourth quarter results and our brand health tracker, we’re the fastest gaining pizza company in worth what you pay metrics, which is great spot to be.”
Penegor explained that Papa John’s reworked its loyalty program to encourage people to join. Customers now get $2 off their next purchase when they spend $15, he said, instead of getting $10 off when they spend $75. According to Penegor, this change has helped the company improve its “value perception” and bring customers in more often.
According to Penegor, despite the trade and price uncertainty caused by President Donald Trump’s tariff action, the pizza maker has actually seen cheese prices come down. He said Papa John’s is getting in a better position on cost inputs quicker than anticipated.
He also dismissed concerns that the popularity of GLP-1 weight loss drugs may curb consumers’ cravings for junk food. People on the drugs may simply just eat less pizza, he continued, saying Papa John’s can serve customers’ needs whether “you’re having three pieces of pizzas or a couple of bites.”
“Pizza’s still a great value for the money,” Penegor said.
