why pzza doing good in international growth but dpz not?

The premise of your question is spot on, and the divergence became glaringly obvious in the first quarter of 2026.

While Papa John's (PZZA) reported a solid +3.6% increase in international same-store sales (marking its 6th consecutive quarter of international growth), Domino's (DPZ) shocked the market by posting a -0.4% decline—breaking an unprecedented 32-year streak of international same-store sales growth.

Here is why Papa John's is accelerating overseas while Domino's is suddenly stalling out.

The Domino's Problem: The "DPE" Drag

Domino's international struggles are not a global rejection of the brand. The problem is heavily localized to one massive master franchisee: Domino's Pizza Enterprises (DPE).

DPE is an Australia-based, publicly traded mega-franchisee that operates roughly 25% of all Domino's international locations (covering Australia, Japan, New Zealand, and parts of Europe like Germany and France). DPE has been in a severe operational tailspin:

• The Japan Reset: DPE vastly overexpanded in Japan during the pandemic. As demand normalized, unit economics collapsed, forcing DPE to close over 300 locations recently, mostly in Japan.
• Pricing Missteps: DPE struggled to balance inflation with consumer value, raising prices too aggressively in key markets like Australia, which tanked their order volumes.
• Leadership Chaos: The franchisee is currently bringing in its third CEO in just over a year to attempt a turnaround.

During the Q1 2026 earnings call, Domino's CEO Russell Weiner was remarkably blunt, stating that if you excluded DPE from the metrics, the rest of Domino's international business performed exactly as hoped. But because DPE is so large, its negative comps dragged the entire global average below zero.

Why Papa John's is Winning Internationally

While Domino's is dealing with a mature franchisee hitting a wall, Papa John's is in a much earlier, high-growth phase of its international life cycle.

• The White-Space Advantage: Domino's is heavily saturated in established international markets. Papa John's still has massive runway. Because they are smaller globally, it is easier for them to post high percentage growth numbers as they enter new territories.
• Aggressive Mega-Deals: Papa John's management has pivoted their "Back to Better" strategy heavily toward international development. They are currently executing massive expansion deals, most notably a plan to open more than 1,000 new restaurants in China by 2027 and rapidly scaling in India through strategic local partnerships.
• Lack of Domestic Drag: Ironically, Papa John's international growth stands out so much right now because their North American business is struggling heavily (U.S. comps dropped 6.4% in Q1 2026). International expansion is currently the lone bright spot holding up the company's growth narrative.

The Takeaway: Papa John's is succeeding internationally through aggressive expansion into fresh markets with high-growth ceilings. Domino's is currently paying the price for relying too heavily on a single, massive franchisee that lost its operational discipline in mature markets.