Discounted pizzas and financial aid for franchisees aren’t doing much to curb Papa John’s sales woes.
According to recent checks by Stifel, Papa John’s same-store sales remain under pressure in the third quarter and, if they do not improve, store closures won’t be far behind.
What We Know:
- So far in the third quarter, same-store sales are estimated to be down 10 to 11 percent.
- Between 150 and 250 restaurants in noncore markets could be in danger of shuttering if Papa John’s is unable to reignite its sales, says Stifel analyst Chris O’Cull.
- Franchisees are currently receiving assistance from the company in the manner of reduced royalties, fees and commissary prices.
I guess blaming low sales on a protest of inequality and using the word ‘nigger’ during conference calls didn’t help. The power of the black dollar is something else.
I didn’t want to rant, but feel free to read more of the analyis at CNBC.
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