Papa John’s (NASDAQ:PZZA) has a new CEO in place, as well as refreshed products and a fresh growth strategy, all aimed helping its sales to rebound this year.
On Wednesday, the company said same-store sales in the U.S. and Canada are expected to rise between 2.5% and 5% in 2020.
Fourth-quarter 2019 loss per diluted share was 18 cents. Full Year 2019 loss per diluted share was 24 cents and adjusted earnings per diluted share, excluding the impact of special items, of $1.17 versus full year 2018 earnings per diluted share of $0.08 and adjusted earnings per diluted share of $1.37
In 2019, sales at its North American restaurants that were open at least 12 months fell 2.2% as the company continued to recover from the fallout from a string of high-profile public relations crises involving its founder, John Schnatter.
In November 2017, Schnatter blamed weak sales at the pizza chain on low NFL viewership. And in July 2018, Forbes reported that Schnatter used the N-word in a conference call.
Although Schnatter stepped down, same-store sales turned negative, and customer loyalty at Papa John’s slipped, according to the Brand Keys Customer Loyalty Engagement Index.
Wall Street seemed uncertain whether Papa John’s could recover. From November 2017, when Schnatter made the NFL comments, to July 2018 when he resigned as chairman, shares of Papa John’s slumped 13.8%.
In August 2019, experienced restaurant executive Rob Lynch took over as CEO of Papa John’s. Under his leadership, the pizza chain has introduced new products and hired executives.
Shares dropped $3.48, or 5.7%, to $58.03
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