2018 Wasn’t Good For Papa John’s And 2019 Isn’t Getting Any Better
Papa John, the American pizza joint is facing dull business since the beginning of the current financial year. The company has faced a similar crisis last year. While speaking to the press CEO, Steve Ritchie said that most of the store sales in America have decreased by 8.1%. He further stated that the present sales results are truly devastating. The sales of Papa John fell below par since John Schnatter had spoken racial words over the telephone. John Schnatter is the former CEO, chairman, and founder of the company.
During last year, the company had to face a great loss on its net sales which fell by 20% and the company had earned revenue of $374 million which was earlier expected to be around $390.1 million. While talking to analysts, Mr. Ritchie said that Papa John has started a loyalty program which has further put the company into pressure, since it isn’t able to generate considerable revenue in the first place. The CEO further told that they are offering customers’ cheese sticks for free when they purchase eateries for $12 or more.
After the verbal altercation of Schnatter, Papa John has cut all ties with him and now it’s trying to create a good relationship with his customers. The company has spent $2.2 million in the fourth quarter and has also donated $500,000 to Bennett College which is a women college. The company is planning to commence a brand new digital campaign so that it can get a wide range of prospective customers. During the present fiscal year, Papa John also aims to open near around 150 new pizza stores across the nation.
Furthermore, Papa John is about to introduce some radical changes in its menu. In the upcoming month of March, the company is planning to introduce six exotic flavored pizzas. For the present year, the company has already set an earning target of around $1.20 per share.