It is no doubt that Papa John’s International Inc. has had a tough time in the market, confirmed by its third-quarter earnings report showing a decline in earnings per share, sales, and revenue. However, according to the CEO of the company, Steve Ritchie, they have put specific measures counteracting the declining trend.
Some strategies the new CEO, who stepped in the office this January, has is rebranding the company and improving customer’s relationship with the employees. The Louisville-based company has since received neutral to positive reviews by their customers especially after launching a campaign dubbed “Voices” in September.
Despite Steve Ritchie’s efforts to turn the company around, it still performed poorly against other companies posting only $364 million in revenue against an expected $394 million. According to Yahoo analysts,’ the company’s both earnings per share and revenue declined at least 10 percent. Compared to the previous year, its total earnings were $431.7million making it 16 percent short. Besides, its earnings per share also dropped from 60 cents per share to 20 cents way below the expectations of many analysts by 2 cents per share.
President and CEO Steve Ritchie, also has other measures in place like the restructuring of the organization. Mike Nettles, chief operating and growth officer, also doubles as the Vice president leading the restructuring team. Already improvements are seen on the ground according to Joe Smith who is the CFO, stating that international sales had earlier decreased to 3.3 percent but have since increased by 10 percent due to the 300 new stores opened this year.
Due to the fall in share prices, the Louisville-based pizza company is considering acquisition with two activist investors. After the news broke out, an additional two private-equity firms wanting a piece of the action, especially when the company’s share prices spiked up several times. Steve Ritchie Papa John’s, is however still optimistic going forward into the fourth quarter. Ritchie went on and said, “Our improvement actions are working… and improved consumer sentiment in North America and our continued strong cash flows.” Indeed, the struggle has not ended for the company and new CEO until they win consumer’s trust.