Papa John's Tumbles After Report Of Founder's Racist Remarks

Shares of Papa John's tumbled on Wednesday to $47.80, the lowest price since February 2016, after after outspoken chairman and founder John Schnatter came under fire following a report from Forbes that he used the N-word and graphic descriptions of violence against minorities on a conference call in May designed by marketing agency Laundry Service as a role-playing exercise for Schnatter in an effort to prevent future public-relations snafus."

Following the conference call incident, Laundry Service cut ties with Papa John's - telling staff in a May 31 letter that it was ending its work with an unnamed client thanks to "the regrettable recent events that several employees of Laundry Service witnessed during interactions with a client’s executive," according to a copy of the letter obtained by Bloomberg.

Papa John chairman and founder John Schnatter

On the May call, Schnatter was asked how he would distance himself from racist groups online. He responded by downplaying the significance of his NFL statement. “Colonel Sanders called blacks n-----s,” Schnatter allegedly said, before complaining that Sanders never faced public backlash.

Schnatter also reflected on his early life in Indiana, where, he said, people used to drag African-Americans from trucks until they died. He apparently intended for the remarks to convey his antipathy to racism, but multiple individuals on the call found them to be offensive, the source said. After learning about the incident, Laundry Service owner Casey Wasserman moved to terminate the company’s contract with Papa John’s. -Forbes

Shares of the pizza chain have tumbled 25% since Schnatter waded into the debate over national anthem protests and made several inflammatory comments against the NFL; the slide continued today with PZZA dropping as much as 5.9%, sliding to the lowest level since February 2016.

Papa John's did not dispute Forbes' report on Wednesday, however they noted that "Papa John’s condemns racism and any insensitive language, no matter the situation or setting. ... We take great pride in the diversity of the Papa John’s family, though diversity and inclusion is an area we will continue to strive to do better."

As Bloomberg adds, the company's new CEO, Steve Ritchie, who replaced Schnatter in January, sent an internal memo to team members, franchisees and operators on Wednesday addressing the event, though without mentioning Schnatter by name.

“You may have read the media reports today tied to our company culture. We want to make it clear to all of you that racism has no place at Papa John’s,” according to the memo obtained by Bloomberg News.

“The past six months we’ve had to take a hard look in the mirror and acknowledge that we’ve lost a bit of focus on the core values that this brand was built on and that delivered success for so many years,” Ritchie said. “We’ve got to own up and take the hit for our missteps and refocus on the constant pursuit of better that is the DNA of our brand.” -Bloomberg

The 56-year-old Schnatter founded Papa John's in Jeffersonville, Indiana after he installed a pizza oven at his father's tavern. The business eventually grew to over 5,000 locations with annual revenues north of $1.7 billion. 

Following the NFL anthem controversy, Schnatter stepped down as CEO when during the company's third-quarter conference call he blamed the league for slow sales. The company later apologized for the “divisive” comments. 

Comments

IridiumRebel EmployedMillenial Wed, 07/11/2018 - 12:49 Permalink

Well ZH just deleted my comment so I’ll say it again. 

 

He wasn’t saying these things for controversy, he was stating historical truths. They’re not good, but the fact we cannot even talk about the history of the N word, which is used a million times a day in rap music and pop culture or Col Sanders being racist in his remarks is BS. 

 

I shouldnt teach about slavery because it may offend some folks

 

dafuq

In reply to by EmployedMillenial

Cryptopithicus Homme IridiumRebel Wed, 07/11/2018 - 12:59 Permalink

He needs to team up with Marc Faber and open a Pizza Hedge Fund now.

Also, he seems to have been talking about racism, not engaging in racism or promoting racist beliefs.  Don't you love PC Kulture?  We now have sacred cows that you should NEVER talk about, never look at and tip toe 1 mile wide around?... Lest you find yourself the target of some #hashtag loser group??

In reply to by IridiumRebel

El Vaquero Cryptopithicus Homme Wed, 07/11/2018 - 13:34 Permalink

They come in with intellectual gymnastics, we need to come in with intellectual judo.  For instance, the inability to discuss the topics of how demographics and crime are related means that we cannot come up with solutions for crime in the US.  Since the more serious crimes like rape and homicide disproportionately affect minorities (most homicide victims are from black on black violence and Native American women have it rough when it comes to who's getting raped,) the left does not want these problems solved.  The left claims that racism = prejudice + power and is structural while simultaneously standing in the way of making any structural changes that might reduce homicide and rape.  They are, by their own made up definitions, racist.

In reply to by Cryptopithicus Homme

pods Donald J. Trump Wed, 07/11/2018 - 15:11 Permalink

I cannot seem to find where he used racist remarks. 

He only said the truth (I guess, Idc who said what) and he gets ran out of town on a rail.

The NFL probably did hurt his sales.

Then when he said so, that was racist? And then he has to bring up other incidents in the past that were worse, and he gets beaten up for mentioning them?
WTF planet am I on?

pods

In reply to by Donald J. Trump

FreedomWriter IridiumRebel Wed, 07/11/2018 - 13:03 Permalink

My mother remembers taking us white kids onto buses in Birmingham during the early 1960's. These public busses had boards used to segregate black riders from white riders. If someone wanted to be an asshole, they could move the board all the way to the back of the bus.

Did that suck? Yes. Do all Americans have to suffer for it eternally? No. Being a permanent victim (or apologist) is no way to go through life. Then, as now, the elites have used people's differences to keep them divided AND conquered. Its time to move on, people. Unless we want to remain life-long slaves of the emotion-manipulating, guilt-tripping PC brigade and its shit-for-brains enablers. I say fuckem all and the limousines they rode in on. Kanye and Candice are moving in the right direction here.

In reply to by IridiumRebel

MoreSun FreedomWriter Wed, 07/11/2018 - 13:54 Permalink

The jew supremacists created, funded and staffed the Naacp. For the first 50 years the Naacp had no black CEO. They finally installed a token black to keep the propaganda going. Their sole purpose is to divide through hate mongering tactics on both sides.

The jew supremacists use the Naacp as well as Zoa, Adl, Splc, Jwc, Aclu, Jdl, and a thousand more jew supremacist foreign agent organizations to divide and conquer this Republic and turn it into a third world jew supremacist controlled hellhole.

In reply to by FreedomWriter

Never One Roach arby63 Wed, 07/11/2018 - 13:21 Permalink

... and Joy Reid is still at MSNBC after all her racists, homophobic and anti-Semitic slurs.

That's odd?

Anyway, at least Papa actually produces something and their pizzas are delicious for those who like tons of cheese and red sauce. The stawk will bounce back for sure. Just another virtue signalling PC bashing for a few days.

The PC's and far Left crazies hate this Papa guy because he is a Trump supporter so I'm not surprised they slander him.

On the other hand, MSM is silent about progress in the Democrat Eric Schneidermann case of his "punching, choking and spitting on woman" or Hillary's close friend Weinstian's hundreds of sexual assaults on women and plants.

 

In reply to by arby63

I am Groot adr Wed, 07/11/2018 - 14:06 Permalink

If they want African names, by all means let them go back to Africa and name their 20 fucking kids.

Sheenana, Placenta, Doorstop, Shanequa, Chlaymidia, Monique, Unique, Treyvon, Reyvon, Re-re, Tariq, Malik, Mercedes, Porche, Escalade, Cadillac, Ferrari, Clitoria, Tawanda, and Condalizza.

 

A federal judge has barred black women from choosing their children's names because they were so bad:

https://www.snopes.com/fact-check/black-listed/

In reply to by adr

lonesome foghorn IridiumRebel Wed, 07/11/2018 - 13:21 Permalink

If that's the case this is similar to a thing maybe 30 years ago where that Jimmy the Greek the NFL commentator or whatever he was was filmed in a restaurant casually mentioning how black slaves were sometimes bred for size by their owners (because that's what slave owners of farm slaves do). He was stating historical facts. 

Cut to Dan Rather, looking all glassy-eyed and earnest and being "impartial" by stating: "We don't know why he said these things." Next story.

Big outrage all around. I think the Greek got fired by his network. Meanwhile some black leaders and historians came to his defense. But it didn't matter. 

All this confused inane thinking was well on its way, promoted by the MSM. And here we are.

In reply to by IridiumRebel