Papa John's Half-Baked Remarks Force Founder's Exit As CEO

(RTTNews) - Papa John's International Inc. (PZZA) founder John Schnatter will step down as CEO next month, more than a month after his controversial remarks about the national anthem protests by NFL players.

In mid-November, Schnatter had blamed the protests by NFL players during the national anthem as the reason for its slowing sales growth.

The Louisville, Kentucky-based pizza chain said that Schnatter will be succeeded as CEO by Chief Operating Officer Steve Ritchie on January 1, 2018. Schnatter, also the company's largest shareholder, will continue as chairman.

Former San Francisco 49ers quarterback Colin Kaepernick had started the national anthem kneeling movement to show his protest against mistreatment of black people by the police. However, hundreds of more players started kneeling after President Donald Trump urged team owners to fire players who protest during the anthem.

Papa John's, which is a sponsor and advertiser of the NFL, said the outcry related to NFL players kneeling during the national anthem as well as falling NFL ratings affected its sales. The company added that customers have a negative view of the chain's association with the NFL.

"NFL leadership has hurt Papa John's shareholders. This should have been nipped in the bud a year and a half ago," Schnatter said in a call with analysts.

Papa John's later issued an apology for the comments, which had drawn praise from white supremacists.

The incoming CEO, Ritchie, did not specifically say if the comments had played a role in the timing of the transition.

Ritchie, aged 43, started with Papa John's in 1996 as a customer service representative at $6 per hour. In 2006, he became a Papa John's franchise owner and operator.

In 2010, Ritchie began serving in increasing capacities of leadership in operations until being promoted to COO in 2014. Ritchie was added to the succession plan for the company's top job in 2015 when he was named President.