Struggling Papa John's names Starboard chief as new chairman

Posted at 9:31 AM, Feb 04, 2019
and last updated 2019-02-04 09:31:49-05

LOUISVILLE, Ky. (AP) — The head of the investment firm Starboard Value is being named board chairman at Papa John's, and it will invest $200 million in the troubled pizza chain.

The Louisville, Kentucky, company has struggled since the messy departure of its founder John Schnatter in late 2017.

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In its most recent quarter, Papa John's International Inc. reported losses of $13 million and revenue tumbled 16 percent. On Monday, it said it now expects its annual profit will be at the low-end of its prior forecast.

But the board changes sent company shares up 6 percent before the opening bell.

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In addition to Starboard CEO Steve Ritchie, Anthony Sanfilippo, former chairman and CEO of Pinnacle Entertainment Inc., will join the board.

Starboard can make an additional $50 million investment through March 29.