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.
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.
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.