Papa John’s defeated heavily recently after a report that a strategy to sell the company has fallen apart. The Wall Street Journal reported that Trian Management Funds—the asset manager—is no longer concerned in bidding for the company. According to the Wall Street Journal, others are still in view of taking a stake in the company and not a total purchase.
Papa John’s stock dropped by 10% at the market close lately. Papa John’s refused to comment for this scenario. Rumors have been spinning for weeks regarding potential buyers for the company. Each report has led to a spike in shares of the company. Without a buyer, the under pressure pizza company will have to find a path to persuade investors that it can solve its issues on its own and defeat competitors Pizza Hut and Domino’s. The company has been toiling hard to detach itself from controversial founder John Schnatter, who stepped down from his role as chairman in July after the news broke that he had spoken the N-word during a conference call. Papa John’s earlier in this month said that same-store sales in North America have dropped by 9.8%. Total revenue was declined by 15.7% from a year earlier to about $364 Million.
Recently, Pizza Hut was also in news for joining forces with the NFL (National Football League) for promoting literacy. Almost 35 Years later unveiling its iconic “BOOK IT!” program—the reading reward initiative—Pizza Hut is growing its commitment to literacy via its partnership with the NFL by collaborating with Pizza Hut NFL team partners and player ambassadors to excel a spotlight on the significance of reading to children and parents across the country. Pizza Hut consolidates with Los Angeles Rams running back Todd Gurley to deal with literacy in its initial year as the official pizza sponsor for the NFL.