Papa John’s International Inc. struggled to sell s even before a controversy fla up ound its outspoken — a point he seized on in a bering critique.

The chn, w John Schnatter resigned as last month, reported compable in North that fell 6.1 percent in its latest quter. That was weaker than s’ estimates and sent the stock down as much as 12 percent in late trading — and led sheher Schnatter to the alm.

shows that the performs better with me involved, and it declines when I step away,” Schnatter sd in a statement following the release of results.

Even before reports in July that Schnatter used a racist slur on a conference c — unleashing a wave of backlash — the chn had trouble attring diners in a fiercely competitive industry. Its efforts to offer more discounts and revamp ads haven’t ed so f, adding fuel to Schnatter’s campgn to oust eisting ship.


“Instead of ading the real and funental issues confronting the since that period, and taking ions to turn ound,” Schnatter wrote, “the is trying to deflect attention from the source of the problem — manment’s ongoing ures with regd to — and blame me for its problems.”

Read More: Papa John’s Second Quarter Revenue Misses Lowest Estimate

The , , says Schnatter’s recent controversy is weighing down , especiy since s broke in mid-July that he’d used the offensive langu. North n same-store fell 10.5 percent in July, after the latest quter ended, Papa John’s sd in a filing Tuesday.

Buyer Interest?

“Ne term, it’s ,” sd Halen. “Who ks if this is the manment to be able to turn it ound. This is attrive; I would think it would be attrive to a private- buyer who could turn it ound out of the eye.”

A declined to comment.

Due to the recent negative publi, Papa John’s incur “significant costs” for reing, a ad campgn, a audit and legal costs, the added in a statement Tuesday. It’s also giving assistance to franchisees who’ve been by Schnatter’s statements “to mitigate closings,” it sd. It estimated those total costs at between $30 million and $50 million for the remnder of the ye.

The shes dropped as much as 12 percent in after-hours trading Tuesday. The stock had tumbled 27 percent this ye.

company spokeswoman

While Schnatter has since apologized for his statements and sd his langu was taken out of contet, the has tried to distance itself from its outspoken former .

Still, Schnatter is on the and owns about 29 percent of the stock. He’s been urging investors to seek s at Papa John’s. He blamed disointing on NFL , guing that s over the national anthem at NFL s were ing ratings — and Papa John’s .

Meanwhile, rival Domino’s Inc. has created an with its ound and ordering. The in the . by is locking in customers with its rewds program, and has made recent moves to re its stores. Hut, , attempting to st a domestic comeback, recently reported a surprise drop in same-store .

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