Papa John’s International, Inc. (NASDAQ:PZZA) is in quite a tough place financially. This last year has been quite the whirlwind for the company and investors aren’t pleased. Papa John’s stock took a decent turn for the better in November of last year, but its shares have plummeted ever since. Today, the stock is down nearly -10% after its latest announcement. Will the stock continue to slide? Let’s find out!
Papa John’s Stock Slides
This morning, Reuters reported that the world’s third-largest pizza company wasn’t happy with the acquisition offers it was receiving. The company initially blamed the National Football League for its problems, but really, it came from the company’s founder and former chairman John Schnatter. Papa John’s has been a longtime sponsor of the NFL, but Schnatter made a racial slur and graphic description of violence against minorities in July of 2018. The company implemented a poison pill to get Schnatter out of the company immediately after the incident.
Papa John’s stock took a huge hit after the story spread. The company did damage control and removed Shnatter from advertisements, but it didn’t help. The company’s stock began to rebound after July, as companies began evaluating a takeover bid of the company. This put investors at ease, until now.
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Instead of an outright buy, the company is seeking funding. Papa John’s is pursuing the sale of a stake in itself since it feels companies have been devaluing the company in its acquisition offers. Schnatter still owns around 30% of the company, and any such deal would be a battle for control of the company. The company seeks to use the profits for promotional materials.
It remains unknown what valuation offers Papa John’s received.
Papa John’s Stock Movement
According to Yahoo Finance, PZZA is currently trading at $38.68 a share, down -$3.61 (-8.53%).
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