The summer this year didn’t go well for the Papa John’s as it has experienced an embarrassing downfall in the sales of the company by around 16 percent which equates to more than $67Mn Dollars within a span of just 3 months. This was the period during which the company made headlines into the news gaining a hell of publicity as the CEO and the founder of the company Schnatter was discharged from his official position because of his racial comments which he had made in the PR Training. It also faced severe criticism from the consumers’ post which he resigned from his post of Chairman.
Another major metric tumbled down by 10 % in the 3rd quarter. The sales volume at many stores in the North American region has dropped down by 9.8 %. It does not include effects of the openings as well as the closing of the stores, the company revealed in a statement which was released on Tuesday. The company has suffered a whopping loss of more than $20Mn over the sales of $364Mn in a single quarter. This quarter was the third quarter in a row in which the sales figures of the company have dropped down.
A few months back, Schnatter had given up his position as a CEO post the controversy related to the Football Players because of the slowing down the growth in the sales of the company. He still remains the major shareholder of the company. He has been succeeded by Steve Ritchie as a new CEO of the company. Ritchie has diplomatically raised the issue in the conference call which he had with the analysts, he has emphasized over the challenges before the company as the results of the third quarter have arrived.