Papa John, John Schneider, Louisville discussed on MarketFoolery
Insulted Magruder. There's a new twist in the Papa. John's story last week. Founder, John Schneider resigned as chairman after admitting that he had used the n. word on a conference call or guys this week. Schneider said it was a mistake to resign. He said the board's decision to remove him was based on quote, rumor and innuendo and David, he owns twenty nine percent of the company stock and he's still sitting on the board. So this is a little bit awkward in this morning. Forbes came out with an article called the inside story of Papa. John's toxic culture, basically talking about broke culture, big, big ego, and just all sorts of things that shot her has been up to. And it's like, okay, that's supposed to happen in Silicon Valley, not in Louisville, what? What are you doing? Man, but yeah, he's still twenty nine percent of the company. He's still plastered on the pizza boxes and the marketing, although that's really been pulled back. And then it's also come out this week that Wendy's and Papa John's before. All this stuff came up or the past couple of months. They are actually in talks to merge. Have some sort of merger. So going forward, if you're the board of directors at Papa, John's I think you have to really consider that possibility. Maybe the best step forward for the company is to look for a merger or a sale because man, the, this just seems like a train wreck that keeps exceleron. And when you have on the board, I guess, you know, he would have to be in favor of buyout or merger for it to go through, but also major league baseball suspended their partnership with Papa John's. So it's not just the NFL the Papa. John's name is coming off of the university of Louisville football stadium. So really is a train wreck. Here they got a, you know, figure out something quickly. I think to the boards credit, they have acted pretty quickly to remove distance themselves from shot her in terms of the marketing, the branding, but Papa. John's like John is still in the name that the founders still in the name. Is there a Papa John's bowl? I mean, you're talking about coming off the stadium. I mean, is there a bowl game? I think there is a Papa. John's. I'm not sure about that. Imagine that's probably on the chopping block as well. Do you have to do you have to some point change the name of the company? Or is this one of those stories where for the average buyer, if I'm looking at pizza and I like Papa John's pizza as my kids do it. This story doesn't really matter that much or some point or they're gonna have to change the name. I think longer term they're probably okay with the name, especially when you're taking, you know, Schneider off of the marketing and the branding. I would think three years from now you'd be fine, especially if they do partner with someone like a Wendy's or some other restaurant chain right now. Papa John's is valued at their enterprise values, two point, three billion dollars. Buffalo Wild Wings was bought for two point, nine billion dollars by Rb so it is a reasonable ballpark for some sort of acquisition or merger. So I look for something like that over the next year because I really think going forward as independent company with Schneider, still owning almost a third of the company and sitting on the board. That's just going to be a really tough situation and advocate, and someone who is. I would love to hear from on this who sits on Papa. John's board of directors is Texas roadhouse, founder and CEO Ken Taylor who was very much a straight shooter as we know we've interviewed him before. I would just love to hear his perspective because he also works in Louisville, and I think he's he's been involved with Schneider and Papa. John's for awhile would just be curious to get his perspective on everything that's going on with the company because now apparently with this Forbes article coming out, there's a lot of cultural and leadership issues at the company that didn't just pop up the past year to this has been going on for a long time. So I think it's important to that for everything that's gone wrong here. And I think the best thing they can do just get out of the headlines in one way shape before don't let this thing just keep dragging down through the headlines, but for everything that's gone wrong. Let's let's not dismiss the things that have gone, right?.