Steve Ritchie, Papa John’s International Inc. CEO, stated that more needs to be done to earn back the trust of the company’s customers. However, he added that the Papa John’s is on the right recovery track. In a conference call, Ritchie said that despite the declining sales, earnings per share and revenue, executives are confident the measures put in place are bearing fruits. The future holds many opportunities for them.
In the call, he was quoted saying that they took the right steps in the quarter and progress has been recorded. However, he acknowledged that they are still facing challenges. Steve Ritchie joined the company early in the year. He commended the company’s rebranding efforts. Specifically, the decision to focus on the company’s employees is changing the way customers perceives the company.
Ritchie also noted that a research showed that the “Voices” campaign they launched in September is shifting the way customers are perceiving Papa John’s to the better. They are proud of the efforts they have put and the progress they have made so far.
The company struggled to meet analyst’s third quarter expectations in vain. The revenue, earnings, and same-store sales did not meet the expectations of analysts. It recorded impressive revenue streams although they generally missed analysts’ expectations. Amidst the declining revenue, they posed increased international sales owing to the new stores that were established.
In the conference call, Steve Ritchie noted that the recent executive suite restructuring will help the pizza titan to start focusing on its customers again. At the helm of restructuring team, Mike Nettles is leading as Vice President, Chief Operating and Growth Officer. Still on restructuring, the company formed four other executive position roles. The restructuring will enable Papa John’s to focus on five key focuses Steve Ritchie Papa John’s had outlined earlier in the year.
There have been talks of acquisitions. According to bizjournals.com, the talks have caused big jumps in share prices. Late last year, an article had hinted that Papa John’s was considering acquisition options. It was also revealed that two activist investors showed interest in acquiring Papa John’s and more are still coming.
Ritchie is optimistic moving forward. He said that while they have not overcome all challenges, improvements have been realized. The company’s confidence is intact with some of its strongholds such as outspoken support, improved consumer sentiment in North America and strong cash flows supporting them all the way.