Papa John's Stock Up On Appointment Of O' Neal As Ambassador
Zacks Investment Research | Mar 24, 2019 09:29PM ET
Shares of Papa John’s International, Inc. (NASDAQ:PZZA) rallied more than 6% at close on Mar 22, following the announcement of appointing restaurateur Shaquille O’Neal as one of the board of directors and an investor in nine Papa John’s restaurants. In conjunction with this, O’ Neal will also ink a marketing agreement with Papa John’s to uphold the position of the company’s brand ambassador.
Appointment of O’ Neal is a strong move on the part of Papa John’s. He is not only a four-time NBA champion and television sports analyst but is also known for his restaurant business. Apart from owning Krispy Kreme Doughnuts franchise in Atlanta, O’ Neal is the founder and owner of Big Chicken, a fast-casual fried chicken restaurant in Las Vegas.
The above-mentioned move is clearly an effort by Papa John’s to revive the long-standing declining sales trend and restore the brand image. Unlike other pizza chains, Papa John’s has been under a negative light for quite a long time, owing to the denouncement of its ex-CEO on grounds of racial slur.
A look at the company’s price trend reveals that the stock has had an unimpressive run on the bourses in the past year. Its shares have lost 10.9% against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.