Papa Johnís founder John Schnatter is thinking about selling his stake in the pizza chain
∑ Papa Johnís founder John Schnatter has solicited financial advisorsí help about selling his stake in the pizza chain, according to an SEC filing.
∑ Schnatter was ousted as chairman last year and is no longer a director, so he has no formal position with the pizza chain anymore.
∑ Papa Johnís will report earnings after the bell Tuesday.
Amelia Lucas, CNBC†
May 7, 2018
Papa Johnís founder John Schnatter is thinking about selling his stake in the company.
Schnatter has solicited financial advisorsí help about selling all or part of his 31% stake in the pizza chain, according to an SEC filing on Monday.
Papa Johnís will report its first-quarter results after the bell Tuesday. Wall Street is expecting the company to report earnings of 24 cents per share and revenue of $385.5 million, according to a survey of analysts by Refinitiv. The company is also expected to report declining same-store sales growth once again.
Ten months ago, the pizza chain ousted Schnatter as chairman after it was reported that he used a racial slur on a conference call. Sales tumbled, and Papa Johnís has struggled to recover. At the same time, Schnatter filed several lawsuits against the company he founded in a bid to regain control but agreed to dismiss them as part of a settlement with Papa Johnís.
Under the terms of the settlement, Schnatterís term as a director expired last week, and he did not seek reelection. The company has also terminated his contractual rights as its founder under the founderís agreement, the filing said. As a result, he no longer has a formal role within the company.
Schnatter and Papa Johnís have discussed appointing a new independent director but have not made a decision yet, according to the filing.
Papa Johnís has been taking steps to turn the business around. In February, activist hedge fund...
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