The November 7th edition of Louisville Business First features an interview with Papa John’s CEO, Steve Richie. The interview, by Bridgett Weaver, gives Richie’s perspective on the future of Papa John’s. The article also highlights some of the challenges that Papa John’s is facing and rumors about an acquisition. In the interview Steve Richie acknowledges the company has challenges but focuses on the success of his reforms.
Steve Richie became CEO of Papa John’s in January. In the interview, Richie emphasizes that his focus on employees has improved customer sentiment. He believes his “Voices” campaign has shifted public opinion of Papa John’s from negative to at least neutral. Richie also points to his restructuring of his executive suite will generate positive results in the future. The restructuring involves focusing more on customer experience, menu strategy, and innovation and branding. Steve Richie optimistic moving into the 4th quarter pointing to strong North American sentiment and strong cash flows as evidence.
The article’s author counters Richie’s optimism with third-quarter earning reports which paint a different picture. The earnings report show declining same-store sales and earnings per share. She also mentions that Papa John’s has missed analysts’ expectations with shares being diluted. The author also points to plummeting share prices which happened in the late summer which only rebounded amid rumors of a possible acquisition. She points to a September Reuters article which backs up the rumor.
The article disputes Steve Richie’s optimism with hard third-quarter numbers. However, the author does not emphasize the short period of time Richie has been CEO. In the spirit of fairness Richie’s reforms cannot be judged by the results of one quarter. After all the man has been CEO for less than a year. The reforms Steve Richie discusses in the article will take at least a year to have an impact on the hard numbers. It is impossible to determine whether those reforms will be positive or negative at this time. You can read about Ritchie’s apology letter on Facebook.
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Extra source: https://insiderlouisville.com/tag/steve-ritchie/