It’s safe to say that Papa John’s (NASDAQ:PZZA) CEO John Schnatter has become a household legend over the years, with a face that you just can’t help but remember after seeing it on a commercial or billboard. Schnatter is best known for, other than his delicious pizza, going against the norm, taking life’s curveball and transforming it into a powerhouse.
Founded in 1984, Schnatter has remained the chairman of the board until now. The public has been informed that there was no particular reason for his decision to step down as CEO, and the changes will take place as of January 1. Steve Ritchie, company president, is lined up to fill Schnatter’s shoes.
While Papa John’s did not provide an immediate reason for Schnatter’s departure, I can’t help but think that the timing is a little odd considering the now-former CEO became a target of scrutiny after he placed blame on NFL players who took a knee during the national anthem. Does that remind you of anyone?
After Schnatter made the comments, Papa John’s sales plunged. In fact, the PZZA stock finished last month down 14%, which is pretty bad for a company that is so well-known and loved. That being said, it wasn’t just the feud with the NFL that caused the decline in November. Papa John’s earnings report wasn’t quite what investors were expecting, so that played a role in the stock dropping in November, despite reporting Q3 earnings per diluted shares of $0.60, which is a 5.3% increase.
Papa John’s ended Thursday’s trading day down 0.34%.
It’s interesting that Schnatter isn’t the only CEO to walk away from the company that they created from the ground up. However, I suppose after you invest so much time in something, the time comes to step aside and let fresh eyes take control.
I am looking forward to seeing the direction Steve Ritchie will take the company in, and what Schnatter does with his free-time. Check back in January, and I’ll do my best to fill you in.
Image Source: papajohns.com
