Papa Johns Growing Rift With Founder Casts Doubts On Recovery


– Shares of Papa John’s International Inc (PZZA.O) slumped as much as 7 percent on Wednesday and hit a near four-year low, a day after the U.S. pizza chain cut its current-quarter forecast blaming its ongoing tussle with the chain’s founder.

The company said on Tuesday second-quarter comparable sales fell 6.1 percent in North America and would continue to slip for the coming months, citing negative publicity from the acrimonious exit of founder and former Chairman John Schnatter.

Schnatter, who founded the company in 1984, was forced to leave in July following reports that he had used a racial slur on a media training conference call.

Leave a Reply

Your email address will not be published. Required fields are marked *