Papa John’s International failed to shake off its financial problems during the second quarter, posting a 25.4% decline in net income on a 5.7% slide in same-store sales for North American restaurants.
Revenues fell 7.1%, to $399.6 million. Net income totaled $8.4 million, compared with a year-earlier tally of $11.2 million.
Management nonetheless described the results as evidence of “strong progress” in the brand’s turnaround. The officials noted that comps had improved since the year-ago quarter, when same-store sales fell 6.1%.
“The table is now set as we begin rolling out our new marketing campaigns and menu items in the second half of the year,” CEO Steve Ritchie said in a statement.
Ritchie also noted the “significant” investment in the brand by Starboard Capital, an activist investor that has successfully pushed for significant changes at Olive Garden parent Darden Restaurants, among other companies.
Papa John’s has been suffering since founder and former CEO John Schnatter acknowledged using a racial slur to describe African-Americans during a corporate meeting. The resulting scandal led to a highly visible fight for control of the chain between Schnatter and the team led by Ritchie, his hand-picked successor.
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