Selasa, 27 Agustus 2019

Papa John's names Arby's President Rob Lynch as CEO - CNBC

Steve Ritchie, CEO of Papa John's International Inc., speaks during an interview on CNBC on the floor of the New York Stock Exchange in New York, March 22, 2019.

Brendan McDermid | Reuters

Papa John's on Tuesday named Rob Lynch, previously president of Arby's, its chief executive officer.

The change is effectively immediately. Lynch replaces Steve Ritchie, who has been CEO since 2018.

Shares of the pizza chain jumped 6% in premarket trading.

Lynch helped lead Arby's to 16 consecutive quarters of same-store sales growth, as well as record sales and profits last year. Inspire Brands, which is privately held by Roark Capital Group, owns Arby's and does not publicly release financial results.

The embattled Papa John's is in the middle of a turnaround plan, helped by an investment by activist hedge fund Starboard Value in February. As part of the deal, Starboard's CEO Jeff Smith became chairman of the pizza chain's board.

"I am thrilled to welcome Rob to Papa John's at this pivotal moment in the company's history," Smith said in a statement. "His proven record transforming organizations and realizing the growth potential of differentiated brands is ideally suited for Papa John's as the company sets forth on its next chapter."

Papa John's saw its same-store sales plunge last summer after it was reported that founder John Schnatter used the n-word on a conference call. The company ousted Schnatter as chairman in July, leading him to file several lawsuits against the company. He dismissed his claims as part of a settlement with Papa John's and has been selling of his stake in the chain.

As sales tanked, the chain has been providing financial assistance through reduced royalties to franchisees in the hopes of mitigating store closures. Papa John's has also been investing in marketing. The chain struck a deal with former basketball star Shaquille O'Neal, making him the new face of the brand.

Sales at stores open at least a year have been improving over the last three quarters, although same-store sales growth remains negative.

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https://www.cnbc.com/2019/08/27/papa-johns-names-arbys-president-as-ceo.html

2019-08-27 12:26:16Z
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