4:54 p.m. ET, May 7, 2019
Papa John's shares spike on hints of a turnaround
From CNN Business' Danielle Wiener-Bronner
Shares of Papa John's jumped 4% after hours on Tuesday, following a quarterly report that appeared to convince some investors that the troubled pizza company is starting to turn things around.
The company said that in the first quarter, sales at stores open at least a year in North America fell 6.9% compared to the same period last year. The results mark the sixth straight quarter of declines for Papa John's. But it's also an improvement over last quarter, when sales at stores open at least a year in North America fell 8.1%.
Papa John's (
PZZA) has been
trying to bounce back after a series of controversies. Comments by founder and former CEO John Schnatter's about the NFL player protests and his use of a racial slur during a conference call all hurt sales. The company has invested in a new marketing campaign and shaken up its leadership, among other things, to help repair its reputation and bolster the business.
"The first quarter was a time of promise for Papa John’s," CEO Steve Ritchie said in a statement Tuesday. "Substantial, positive change takes time and effort," he added, saying that he's "excited" for the future.