Tags: papa johns | schnatter

Papa John's Founder: Massive Stock Sale an Easy Decision

Papa John's founder and former CEO John Schnatter
Papa John's founder and former CEO John Schnatter attended the 2015 Indy 500. (Michael Hickey/Getty Images)

By    |   Wednesday, 06 November 2019 01:12 PM

Papa John's Pizza founder John Schnatter said Wednesday it was not a difficult decision to sell off $107.5 million of the chain's stock earlier this month.

"I feel there's no reason to be in the car when the car crashes, even if you love the car," Schnatter told Fox Business' Maria Bartiromo. "My decisions are made strictly as an outside investor, and in this case, it's really simple. Arithmetic is not an opinion."

According to a Securities and Exchange Commission filing this week, Schnatter on Nov. 1 sold off 1.9 million shares of stock in the pizza chain. He still owns 2.9 million shares, at a value of $166 million, leaving him with 9.2% of the company.

The company's shares are down 3.6% since Schnatter left as CEO in December and had sunk as far as 34% before the company rallied.

On Wednesday, Schnatter said the company he founded dropped without him at the helm because it has "abandoned its fundamental principles" of transparency, integrity, mutual respect, and quality.

Schnatter left the company's board earlier this year in a deal coming after he stepped down as chairman last summer following reports that he'd used a racial slur on a media training conference call, which he denies.

The pizza chain also announced Wednesday that its CFO Joe Smith is leaving the company after having been there for almost 20 years, reports Fox Business. Several other key executives have also left, and Schnatter said the decision to replace the team is a knee-jerk reaction from management that is "not being proactive."

However, Schnatter said he does not plan to take the company over at its current price of more than $50 a share, as it's "potentially a $15 stock."

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Papa John's Pizza founder John Schnatter said Wednesday it was not a difficult decision to sell off $107.5 million of the chain's stock earlier this month."I feel there's no reason to be in the car when the car crashes, even if you love the car," Schnatter told Fox...
papa johns, schnatter
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2019-12-06
Wednesday, 06 November 2019 01:12 PM
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