Papa John’s stock is falling on the market today after reports surfaced that the company missed its anticipated earnings last quarter.
John Schnatter Not Backing Down
The company has been fighting back and forth with Papa John’s founder, John Schnatter, after a July conference call where the founder used a racist slur. After reports surfaced of his words, the company took a hit and had trouble attracting diners in a fiercely competitive pizza industry.
Papa John’s has since removed the founder from all of its campaigns and commercials. The company even went as far as offering discounts and has completely revamped all of its advertisements—but nothing has worked so far.
Now, the company has taken matters into its own hands and has forced Schnatter to resign as Chairman. The founder recently shot back at the company, blaming the declining sales on the fact that the leaders forced him out.
“History shows that the company performs better with me involved, and it declines when I step away,” Schnatter said in a statement following the release of results.
The company, however, says that Schnatter’s recent comments and controversy are what is weighing down the performance of the company. Papa John’s North American sales dropped 10.5 percent around the time Schnatter made the racist comment on the conference call.
“Instead of addressing the real and fundamental issues confronting the company since that time period, and taking actions to turn sales around,” Schnatter wrote, “the company is trying to deflect attention from the source of the problem—management’s ongoing failures with regard to financial performance—and blame me for its problems.”
Papa John’s Stock Continues to Fall
Regardless of who you think is to blame in the matter, Papa John’s (NASDAQ:PZZA) sales are dropping at a rapid pace, and its stock is mimicking its sales.
According to Yahoo Finance, PZZA stock is currently trading at $40.13, down -$0.93 (-2.27%). The stock is down -45.30% in its 52-week change.
Featured Image: Depositphotos/© wolterke