Papa John's Posts Strong Sales For Third Quarter, CFO Will Depart

Papa John's International Inc. posted its third-quarter results Wednesday, earning $403.7 million in revenue and bringing in 21 cents earnings per share. The company saw a 1% increase in same-store sales, beating an expectation of -0.6%. International same-store sales increased by 1.6%, the same as the expected figure.

“We are very pleased to have positive comparable sales in North America for the first time in two years," Rob Lynch, the company's president and CEO said. "I have spent a large part of my first two months meeting with our franchisees, team members, and other key stakeholders. We are all focused on the right things – reinforcing the quality of our food, improving our unit economics, and promoting a company culture that sets us up to win for years to come."

The company also announced that its CFO Joe Smith will leave the company in 2020, with Papa John's soon searching for a replacement.

Chief Operating and Growth Officer Mike Nettles and Chief Marketing Officer Karlin Lindhart will also leave the company. Mark Wetzel, a former executive at PPG Industries, will now be the new chief commercial and marketing officer at the company.

Papa John's has been revising its growth strategy since former CEO and founder John Schnatter brought controversy to the company. Schnatter had made negative comments towards the NFL in the midst of a series of incidents where NFL players chose not to stand during the national anthem. The comments caused Schnatter to step down as CEO in 2017.

In July 2018, Schnatter had reportedly made a racial slur in an internal meeting, forcing him to step down as the chairman of the board. Schnatter has been selling his shares of the company's stock. Schnatter recently expressed in an opinion column in the New York Post that it was a mistake for the company to let him go, and that the company has not been run properly since his ouster.

Papa John's has tried to revamp its image in the post-Schnatter era. The companyenlisted former basketball star Shaquille O'Neal this year as a brand ambassador to promote the company.