Papa John's pays dividend, wins back Texas Rangers
Papa John's — which is scheduled to release its financial results next Tuesday — said that it will pay out its quarterly dividend rate of $0.225 per common share on Aug. 24 to shareholders of record as of Aug. 13. The company's name has perpetually been in the news this summer after a racial slur reportedly made by its controversial founder during a May media training call.
Nonetheless, the company said this week that at the current quarterly dividend rate, its annual dividend is equivalent to $0.90 per common share. The news came as the Major League Baseball's Texas Rangers announced Wednesday they would become the first pro sports team to actually re-establish ties with the brand, according to USA Today, now that Papa John's outspoken founder has been stripped of all but his board membership with the company.
Papa John's founder John Schnatter stepped out as CEO last December after controversy over his statements around the NFL, while he was ousted as board chair last month after news became public of his using racial slurs during a May media training call. He has also been essentially kicked out of his headquarters office and remains on the board as a member only. Shareholders must vote to change any member's presence on the board.
The Rangers, who said in a statement that Schnatter's alleged slurs on that call were "reprehensible," added that it would resume working with the company since leadership has actively worked to push Schnatter out of his active company roles and take remedial actions in the wake of his alleged statements.
The Rangers are returning its half-price pizza promotion with the brand to active status, allowing fans to get half off their pies the day after Rangers score seven or more runs in a game.
The statement said that the brand had "taken a number of meaningful steps to address the reprehensible language used by John Schnatter." It added that "Most importantly, the company has removed Schnatter from any role with Papa John's. The company has acknowledged the hurt that was caused and accepted responsibility for doing whatever is necessary to regain the trust of its customers, partners and employees. Papa John's has promised transparency in this effort, including hiring outside experts to conduct an audit of the company's culture and diversity and inclusion practices."
The team had halted the promotion on July 13 after the most recent negative news erupted around Schnatter's media training call.