Feb
05
Papa John's gets a big investor as sales continue to suffer
Posted in: Uncategorized
Starboard’s investment comes in the form of a purchase of convertible preferred stock. The main takeaway is Papa John’s now has more money to repay debt and work on improvements in areas including its brand.
In Starboard, Papa John’s gets the financial backing and insights from a team that in 2014 famously suggested Darden Restaurants serve fewer breadsticks and salt the pasta water at Olive Garden to help boost that chain’s business.
“It’s unclear what plans Starboard Value may have for Papa John’s, but its most visible success story in the restaurant industry was creating value at Darden about five years ago through a combination of cost cutting, asset sales, and leadership changes,” Stifel analyst Chris O’Cull said in a research note.
Post a Comment