Papa John's International (PZZA) was faced with same-store sales growth pressure in Q4 on softer consumer spending, macro conditions and strong promotional activity, UBS Securities said in a note Friday.

Still, the report said its international performance was solid across key markets.

"Focus remains on strategic plans to support sales recovery, including menu innovation, marketing, and operational improvements," the note said.

The report said the company is expected to focus on improving value perceptions relative to peers and investments to support a better sales growth trajectory in 2026.

UBS analysts lowered their estimates to reflect ongoing pressures and uncertainties around sales recovery over the near- to medium-term.

"At ~8x '26 EBITDA, we believe risk/reward is balanced as macro pressures remain a risk," they said. "We're focused on indications of traction on turnaround plans before getting more constructive."

UBS cut its price target to $33 from $42 and kept its neutral rating.

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