Papa John’s shares sizzle after appointment of new chief
Shares in Papa John’s have jumped six per cent, after the company hired the head of US restaurant chain Arby’s as its new chief executive.
The world’s third largest pizza chain appointed Arby’s president Rob Lynch today, replacing Steve Ritchie just 19 months after he took the role.
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The appointment is a move to turnaround the struggling pizza chain. The share price of Papa John’s reached a record low in August 2017, dropping 13 per cent after its founder John Schnatter used the N-word in a conference call.
Schnatter also came under fire for criticising the NFL’s handling of its American football players’ national anthem boycott. He blamed the protests, which saw players kneel during the national anthem in objection to the treatment of black people in the US, for declining pizza sales.
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The firm had been the official pizza sponsor of the NFL since 2010, a contract which was nulled four months after Schnatter’s criticisms were released.
The founder’s resignation was accepted by the company in 2017, condemning “racism and insensitive language” and replacing him with Steve Ritchie.
After taking a stake in the company worth $200m (£162.7m) in February, hedge fund Starboard Value has been pushing for a turn-around in Papa John’s sales.
Starboard chief Jeff Smith said he believes Lynch is the right man for the job, stating: “[Lynch’s] proven record transforming organisations and realising the growth potential of differentiated brands is ideally suited for Papa John’s as the company sets forth on its next chapter.”
Main image credit: Getty