LOUISVILLE, Ky. (WHAS11) – One year ago, Papa John’s was fresh into managing a major national controversy over the racist language founder John Schnatter used in a training session.
The company announced its first profit in a year but admitted pizza sales are still off.
CEO Steve Richie announced second quarter earnings of $8.4 million compared to $11 million in 2018. He says fewer Papa John’s locations are closing compared to a year ago.
The chain is getting ready to spend another $1 million on their new marketing campaign with NBA legend Shaquille O’Neal.
O’Neal talked about his role on ABC’s Good Morning America earlier this year.
Richie explained that deal during a conference call on Tuesday.
“Papa John’s partnership with Shaq is an important part of our strategy to reconnect with our consumers around our truly differentiated market position. Since he joined the board of directors in March, we have finalized the other details of our partnership, including his 9 Atlanta-area restaurants as well as his multi-year role as Papa John’s brand ambassador,” he said. “We have two main priorities. One – they want to diversify their leadership, that’s why they asked me to be on the board. Second – we want to create a culture where everyone is accepted, loved and rewarded.”
Bright spots for Papa John’s are in Europe, where sales are growing in the United Kingdom and Middle East.
Richie says in England, hot dog and vegan pizzas are popular.
The company says its efforts are working to become more diverse locally and with franchisees.
Papa John’s stock closed up Tuesday at $43.25 a share.
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