KM Capital is taking over 44 Papa Johns locations in Mexico, with plans to grow from there.
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Papa Johns is looking south of the border for a fresh slice of growth. The chain named KM Capital, a Mexico-based investment firm founded in 1986, as its new franchise partner there. KM Capital is taking over 44 existing Papa Johns restaurants and plans to keep investing in operations, branding and growth across the country, according to NRN. “Mexicans have a strong passion for pizza, and we see an opportunity to grow the Papa Johns’ brand,” said Enrique Ruiz Mandujano, the firm’s CEO.
Papa Johns’ international business just posted its seventh straight quarter of positive same-store sales, up 1.5% in Q2. Its U.S. business, meanwhile, is down 8.3% over the same stretch.
CEO Todd Penegor has been leaning into what’s working abroad, focusing on priority markets and closing underperforming locations to strengthen franchisee health, and now he’s trying to bring that same playbook back home to fix the North American business.
Papa Johns runs about 6,000 restaurants across roughly 50 countries. If Mexico keeps performing the way KM Capital expects, it could end up being one of the brighter chapters in an otherwise tough year for the brand.