The company named Rob Lynch, currently the president of Arby's Restaurant Group, as chief executive. Lynch will take over from Steve Ritchie, who was named CEO about 19 months ago following a fight for control of the board.
Bloomberg first reported the changes could be announced Tuesday.
The moves come after an extended period of underperformance for the stock. Papa John's shares have lost more than 40% of their value over the past two years, while the SPDR S&P 500 (SPY - Get Report) exchange-traded fund, which tracks the S&P 500, gained 16%, according to Yahoo. Both figures exclude dividends.
Earlier this year, activist investors Starboard demanded change at the company.
Papa John's has suffered from dwindling same-store sales which the company attributed, in part, to issues involving former CEO John Schnatter, who generated controversy over racially charged statements. Schnatter stepped down as CEO in 2017 and resigned as chairman in January 2019.
In a press release Tuesday, Papa John's reaffirmed its fiscal-year outlook calling for adjusted earnings of $1 to $1.20 a share, and North America comparable-store sales down 1% to 4%.
The stock rose 6.12% to $46.50 in trading Tuesday.
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