Papa John's stock soars after takeover rumors

Controversy, shmontroversy. Investors love Papa John's stock again -- because it might get taken private....

Posted: Oct 10, 2018 6:52 AM
Updated: Oct 10, 2018 6:52 AM

Controversy, shmontroversy. Investors love Papa John's stock again -- because it might get taken private.

Shares of the beleaguered pizza chain rose about 8% Tuesday after the Wall Street Journal reported that Trian Fund Management is considering a bid. The activist hedge fund has a taste for fast food: It owns 13% of Wendy's (WEN).

Banking, finance and investments

Business figures

Business, economy and trade

Companies

Financial markets and investing

John Schnatter

Papa John's Pizza

Securities trading

Stock markets

Trian contacted Papa John's to collect information for a possible bid, according to the Journal. The newspaper cautioned that there's "no guarantee" that Papa John's will be sold or if Trian will even make an offer.

Trian and Papa John's didn't immediately reply for comment.

Papa John's (PZZA) stock has fallen 3% this year. Sales declined after its founder, John Schnatter, admitted to using the N-word on a conference call. He apologized and resigned as Papa John's chairman in July.

The company and Schnatter, who remains on the board and owns nearly 30% of the company's shares, have been engaged in a public feud. Schnatter had held takeover talks with Wendy's before his ouster, according to the Journal.

Schnatter is suing Papa John's and has accused the current leadership of allowing his comments to be misrepresented in the media. He has called CEO Steve Ritchie the wrong man for the job, and said that he has helped create a toxic culture rife with harassment and intimidation.

In response, Papa John's board accused him of "promoting his self-interest at the expense of all others in an attempt to regain control." Schnatter has said he regrets resigning as chairman, but that he doesn't want to regain his role as CEO.

Papa John's recently rolled out a new ad campaign that further distances itself from Schnatter.

Terre Haute
Mostly Cloudy
83° wxIcon
Hi: 90° Lo: 70°
Feels Like: 89°
Robinson
Partly Cloudy
81° wxIcon
Hi: 87° Lo: 69°
Feels Like: 85°
Indianapolis
Cloudy
80° wxIcon
Hi: 89° Lo: 73°
Feels Like: 84°
Rockville
Mostly Cloudy
80° wxIcon
Hi: 88° Lo: 69°
Feels Like: 86°
Casey
Partly Cloudy
83° wxIcon
Hi: 87° Lo: 71°
Feels Like: 91°
Brazil
Cloudy
83° wxIcon
Hi: 89° Lo: 70°
Feels Like: 89°
Marshall
Mostly Cloudy
83° wxIcon
Hi: 87° Lo: 70°
Feels Like: 89°
Sunny, hot, and isolated showers.
WTHI Planner
WTHI Temps
WTHI Radar

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Cases: 1407929

Reported Deaths: 25834
CountyCasesDeaths
Cook56116810553
DuPage933531321
Will777131042
Lake689761025
Kane59918816
Winnebago34589523
Madison32075533
St. Clair29670526
McHenry29452299
Peoria23620346
Champaign21446158
Sangamon19474245
McLean18765194
Tazewell17406308
Rock Island15345329
Kankakee14715224
Kendall13432100
LaSalle12904253
Macon11121214
DeKalb10235122
Vermilion10162154
Adams9386128
Williamson7963138
Whiteside7241174
Boone691180
Ogle627584
Grundy603379
Clinton585893
Coles5838101
Knox5712157
Jackson537465
Henry512970
Macoupin493389
Livingston493192
Woodford490783
Stephenson487286
Effingham480474
Franklin478178
Marion4686117
Jefferson4613123
Monroe447894
Randolph427687
Lee422554
Morgan410092
Fulton409659
Logan404665
Christian392575
Bureau384187
Montgomery383074
Iroquois326668
Perry326661
Fayette325256
McDonough302651
Jersey276652
Saline267557
Douglas262736
Union244141
Lawrence243627
Shelby234938
Crawford216826
Bond211524
Cass209527
Carroll204337
Pike197153
Ford192050
Hancock190832
Clark189034
Warren186250
Wayne185953
Jo Daviess183324
Richland179640
Edgar178942
White176426
Washington167625
Moultrie166328
Mason162647
De Witt160629
Piatt154914
Clay152943
Johnson152516
Greene151434
Mercer151334
Wabash145212
Massac140440
Cumberland130919
Menard126912
Jasper116818
Marshall109519
Hamilton87816
Schuyler8067
Brown8006
Pulaski7337
Stark65625
Edwards62012
Calhoun5352
Henderson53414
Scott5011
Putnam4933
Alexander48511
Gallatin4774
Hardin39412
Pope3384
Unassigned582432
Out of IL30

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Cases: 764448

Reported Deaths: 13965
CountyCasesDeaths
Marion1049701803
Lake567981029
Allen42685698
St. Joseph37253568
Hamilton37131426
Elkhart29699470
Tippecanoe23347230
Vanderburgh23106404
Porter19538327
Johnson18755391
Hendricks18012321
Madison13463345
Clark13450198
Vigo12789255
LaPorte12533224
Monroe12494178
Delaware11100198
Howard10612237
Kosciusko9736123
Hancock8707149
Bartholomew8235157
Warrick8031157
Floyd7975181
Grant7337181
Wayne7222201
Boone7145105
Morgan6886142
Marshall6323116
Dubois6267118
Cass6083111
Dearborn598578
Noble595790
Henry5939111
Jackson514677
Shelby509097
Lawrence4901127
Gibson460696
Montgomery454492
Clinton453555
DeKalb451585
Harrison450576
Whitley414745
Huntington411781
Steuben409560
Miami404073
Jasper399455
Knox387091
Putnam383762
Wabash367383
Adams351656
Ripley350471
Jefferson340486
White338954
Daviess3084100
Wells302281
Greene292285
Decatur291493
Fayette285864
Posey280435
Scott278058
LaGrange276972
Clay273048
Washington252437
Randolph247083
Jennings238149
Spencer237531
Fountain233750
Starke229859
Owen221059
Sullivan219043
Fulton207645
Jay202832
Carroll196522
Orange190556
Perry189139
Vermillion179644
Rush177027
Franklin171635
Tipton171547
Parke153616
Pike141234
Blackford137832
Pulaski122948
Newton122436
Benton109215
Brown105743
Crawford105116
Martin92515
Warren87615
Switzerland8308
Union73510
Ohio58211
Unassigned0428