Papa John's says it expects the pandemic-induced spike in pizza sales to continue 'for the foreseeable future'

• Papa John's same-store sales in the US were up 28% in the most recent quarter.
• CEO Rob Lynch said that the chain's strengths in delivery and e-commerce positions it "well for the foreseeable future, as customer ordering and consumption behavior continues to be affected by the pandemic."
• Lynch also attributed the chain's success in part to Papa John's "work to create a more diverse, inclusive, and innovative culture," following the ousting of founder John Schnatter two years ago.

Papa John's sales are booming.

The chain's same-store sales in the US were up 28% in the most recent quarter, Papa John reported on Thursday. As the coronavirus pandemic drags on, Papa John's said its delivery business and online growth sets it for success in the long term.

"Mobile ordering is our fastest growing platform," CEO Rob Lynch said on a call with investors on Thursday. "This capability positions us well for the foreseeable future, as customer ordering and consumption behavior continues to be affected by the pandemic — possibly with long-term impact."

Delivery wasn't the only way that the pandemic has helped Papa John's. Lynch said that the availability of attractive real estate opportunities in the coming months offer "room for expansion that may not have been available just six months ago."

Lynch also attributed the chain's success in part to Papa John's "work to create a more diverse, inclusive, and innovative culture."

The company has overhauled its culture since two years ago, when founder John Schnatter sparked scandal after saying the n-word on a company conference call. Sales plummeted, dropping by 10.5% in July when reports of Schnatter's behavior surfaced. Systemwide sales ultimately dropped 7.3% in 2018.

Sales recovered through 2019 when the chain brought on Lynch to serve as CEO. Papa John's began promoting board member and basketball star Shaquille O'Neal as the face of the brand and bought out Schnatter's shares of the company.

However, it took the coronavirus pandemic for Papa John's sales to reach record-breaking highs. Pizza sales have skyrocketed across the board during the pandemic.

Domino's reported in mid-July that its same-store sales were up 16.1% in the most recent quarter. Pizza Hut parent company Yum Brands reported last week that same-store sales in the US were up 16%, including closed Express units. Excluding the closed units, Pizza Hut's same-store sales grew by 21% in the US in the most recent quarter.