Papa John’s Makes “Poison” to Ward Off Former CEO
Papa John’s Pizza does not want its founder to get the ‘controlling’ slice. So, it has prepared the “poison pill”.
John Schnatter resigned as the firm’s chairman this year after admitting to using a racial slur in a conference call. But he now accuses the board of inadequate investigation into the matter, which he claims to have resulted in his forced resignation based on “rumor and innuendo”.
Schnatter is still on the Papa John’s board, and owns 30% stake in the firm alongwith and his associates. His attorney has said that any attempt to remove Schnatter from the board without a "proper vote of the shareholders will be null and void."
But the board is not willing to give up without a fight. It is ready with what’s touted as a “poison pill” – a strategy which is designed to prevent anyone from acquiring a controlling stake through the purchase of common shares of the firm, if not approved by the board. It intends to implement the pill if Schnatter and his associates increase their stake to 31% or anyone tries to buy 15% stake through the open market if the company does not approve. In these events, existing shareholders would be allowed to buy up shares at a discount, thereby diluting the stakes of Schatter or others. Papa John’s poison pill plan is scheduled to last one year.
PZZA in downward trend: 10-day moving average moved below 50-day moving average on May 11, 2026
The 10-day moving average for PZZA crossed bearishly below the 50-day moving average on May 11, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PZZA as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PZZA turned negative on April 29, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at .
PZZA moved below its 50-day moving average on May 06, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PZZA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where PZZA's RSI Indicator exited the oversold zone, of 45 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 62 cases where PZZA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PZZA advanced for three days, in of 288 cases, the price rose further within the following month. The odds of a continued upward trend are .
PZZA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 197 cases where PZZA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.291). P/E Ratio (39.373) is within average values for comparable stocks, (31.637). PZZA's Projected Growth (PEG Ratio) (2.375) is slightly higher than the industry average of (1.591). Dividend Yield (0.056) settles around the average of (0.207) among similar stocks. P/S Ratio (0.535) is also within normal values, averaging (1.689).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PZZA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PZZA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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General Information
an operator of pizza delivery and restaurants
Industry Restaurants
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