Market Overview

Papa John's Founder John Schnatter Issues Statement on Company Second Quarter Results


Papa John's founder John Schnatter today issued the following statement
in response to the Company's second quarter results:

This press release features multimedia. View the full release here:

(Photo: Business Wire)

(Photo: Business Wire)

"As I communicated to the Board as early as December 2016 and several
times in 2017, I am seriously concerned about the Company's declining
sales, financial performance and, most importantly, the direction the
Company headed under the stewardship of Steve Ritchie and the current
board of directors. The financial results announced today further
exemplify that concern.

Today's results highlight the further deterioration of Papa John's
financial performance under the tenure of Steve Ritchie, since he
assumed CEO responsibilities in mid-2016. Instead of addressing the real
and fundamental issues confronting the Company since that time period,
and taking actions to turn sales around, 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

As the attached chart demonstrates, the Company's performance began to
decline long prior to my comments about how NFL leadership was failing
to resolve issues to the satisfaction of players and owners – and to be
clear, my issue was always with the NFL leadership and not with the
players who were protesting. Likewise, while the comments I made during
the conference call with Laundry Service were seriously misrepresented,
the actions taken by the Company in response have been misguided,
heavy-handed and malicious, and have made the situation worse.

I built this Company from the ground up and am still its largest
shareholder. Results under my leadership demonstrate that I know what
works and what doesn't work for this Company. Indeed, history shows that
the Company performs better with me involved, and it declines when I
step away. I have little doubt that the Company's financial performance
will continue to deteriorate under the current CEO and board of

I am not going away and will continue to fight to do what's best for the
Company and its employees, franchisees, shareholders and customers."

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