Papa John's appoints Arby's President Rob Lynch as CEO
Papa John's International on Tuesday named Arby's President Rob Lynch as its new CEO.
Shares popped on the news as the company distances itself even farther from controversial founder John Schnattner who was forced to resign in 2017. The jump in the stock on Tuesday has added, mid-morning, over $90 million to the company's market value, as tracked by Dow Jones Market Data Group.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PZZA | PAPA JOHN'S INTERNATIONAL INC. | 55.26 | +2.87 | +5.48% |
Lynch is expected to succeed Steve Ritchie in the position.
The naming of a new chief executive is one of the biggest moves made by shareholder Starboard Value.
Starboard Value has invested $250 million in the pizza company since in February, at that time naming Jeffrey Smith as chairman.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PZZA | PAPA JOHN'S INTERNATIONAL INC. | 55.26 | +2.87 | +5.48% |
Lynch joined Arby’s in 2013 as chief marketing officer.
His resume includes positions at Procter & Gamble and Yum! Brands' Taco Bell.
Papa John's founder John Schnatter agreed to resign earlier this year from the board and dismiss a lawsuit related to his departure last year as chairman.
Public troubles began in November 2017 when Schnatter ignored the advice of his board and, during a quarterly earnings call, blamed the chain’s slowing sales growth on the National Football League’s handling of its players’ national anthem protests.
Schnatter agreed in December 2017 to step down as CEO because of the backlash.
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The founder used a racial slur on a conference call, which he said was taken out of context.
Papa John’s operates about 5,300 locations globally.