Papa John’s stock price took a hit on Tuesday amidst a report that there might not be any buyer for the company, as of now.
A Wall Street Journal article said that the asset manager Trian Management Funds is reportedly no longer interested in bidding for Papa John's. There might be other investors willing to buy a stake, but not ready to fully own the company (as indicated by the same report). No official statement has come forth from Papa John’s or Trian.
The pizza chain has been mired in challenges this year. It has been apparently trying to sever ties with founder John Schnatter. Schatter stepped down as chairman following allegations that he used a racial slur during a conference call. In July, Papa John’s announced that it would use a “poison pill” (a stock dilution strategy) against Schatter should he try to increase his stake in the company.
Papa John’s also faced some headwinds in its recent performance. Its same-store sales declined by -9.8% in North America during the most recent quarter, while total revenues plunged -15.7% from the year-ago period.