John Schnatter has become quite the news-maker this month.
The founder and now former chairman of Papa John's (PZZA - Get Report) -- under fire for making allegedly racist comments in a PR call -- has reportedly held merger talks with burger chain Wendy's (WEN - Get Report) . According to The Wall Street Journal, Schnatter held preliminary talks with Wendy's before he stepped down as chairman last week. Schnatter owns about 30% of Papa John's outstanding shares.
A Wendy's spokeswoman told TheStreet the company does not comment on rumors or speculation. "I think you will start to see a little more consolidation -- in any industry where you are seeing flattish to 1% customer count growth you really do need to drive some consolidation," Wendy's CEO Todd Penegor told TheStreet in January.
He wasn't kidding.
As TheStreet laid out months ago, a sale of Papa John's makes a great deal of sense. On the latest edition of "Rewind", TheStreet looks back at that analysis. Be sure to sign up for the latest "Rewind" newsletter here.
- Date: Feb. 28, 2017
- The Call: Papa John's Should Be Sold Because It's Undervalued
- Who: TheStreet's Brian Sozzi
Plunging stock price. Attractive valuation. Papa John's.