The recent sales of Papa John’s International Inc. surpassed the estimates of sales analysts. This only indicates that the pizza company is slowly getting its mojo back under new leadership and management of Steve Ritchie and Jeff Smith respectively. Interestingly, Papa John’s stock climbed up in extended trading.
Sales of its North America operations revealed a fall of 6.9 percent in the last quarter topping the projections of a 7.9 percent fall, which slowed down the pace of sales plummeting. The results are ground breaking after a long hiatus since the leadership of its CEO Steve Ritchie and its new chairman Jeffrey Smith.
Papa John’s pizza chain is gearing to reinforce its advertising and in March fetched in a new head for its global marketing department from Subway restaurants. Recently, the company also made several headlines when they introduced the NBA Hall of Famer Shaquille O’Neal as its investor, board member, and brand ambassador.
According to CEO Steve Ritchie, positive and substantial change definitely takes time and effort. In February of this year, Starboard Value invested $250 million in the pizza company and elected its chief executive officer Jeffrey Smith as the chairman of Papa John’s. The recent results only indicate that the pizza maker is slowly moving past the controversy that affected its reputation and marred its brand.
Although slowly getting back on track, the company is not totally over the incident that until now bleeds its overall operation. Papa John’s revealed that to keep the company afloat, it suffered $4.9 million in short-term royalty deductions. Recently, Papa John’s disclosed that it has discovered several material weaknesses in the company’s control over internal financial reporting.
However, as a result, it will no longer have to restate its earnings. During the first week of May, Papa John’s shares increased by 8.4 percent. This means that it has gained 29 percent for this year as compared to a devastating 29 percent loss last year.
Find out more about Steve Ritchie Papa John’s: https://www.courier-journal.com/story/money/companies/2018/10/12/papa-johns-restructure-company-which-includes-new-coo/1619585002/