• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
RetailPapa John's

Papa John’s Board Considers ‘Poison Pill’ to Block Takeover by Disgraced Founder

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
July 22, 2018, 11:22 AM ET

The board of pizza chain Papa John’s is considering a measure to block founder John Schnatter from regaining control of the company.

As reported by the Wall Street Journal, the board may vote Sunday on a shareholder rights plan, or so-called “poison pill” provision. Though such provisions vary in details, they are fundamentally designed to prevent hostile takeovers through stock dilution.

Schnatter, according to the Journal, currently owns 29% of the pizza chain he founded, making him the largest single shareholder and putting him in a position to gain a majority stake and regain control of the company.

That vastly could worsen damage already inflicted by Schnatter in a string of controversies over the past year. Schnatter stepped down as CEO in late 2017 after comments critical of the NFL’s handling of national anthem protests. The comments likely contributed to the end of a major Papa John’s sponsorship with the league. A laundry list of other leagues and teams have followed suit in cutting ties with the company.

Get Data Sheet, Fortune’s technology newsletter.

During a subsequent media training session intended to prevent future controversies, Schnatter, while trying to argue that he is not a racist, used a racial epithet and told an anecdote that others described as offensive. Following reports of that call, Schnatter resigned from his role as chairman, and early last week, the Papa John’s board removed him from office space he leased at company headquarters.

However, Schnatter has since said he was wrongly asked to step down, and has retained a high-profile attorney. In that light, a board measure to prevent him from regaining ownership control may be in the best interest of other shareholders—thanks in part to Schnatter’s string of controversies, Papa John’s stock is currently down 17% since early November 2017.

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
PoliticsFood and drink
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
By Catherina GioinoApril 10, 2026
7 hours ago
JFK, jr and Carolyn Bessette walk their dog in New York City.
RetailLevi Strauss
Levi’s 517 jeans sales jump 25% thanks to ‘Love Story’ and the Carolyn Bessette Kennedy effect
By Molly Liebergall and Morning BrewApril 9, 2026
1 day ago
erewhon
EconomyFood and drink
Americans hate the economy so much, they’re buying $22 smoothies
By Yuanyuan (Gina) Cui, Patrick Van Esch and The ConversationApril 9, 2026
2 days ago
Nutella seen aboard the Orion spacecraft Integrity.
RetailFood and drink
Nutella jumps on the best product placement money can’t buy: A trip to the far side of the Moon
By Catherina GioinoApril 9, 2026
2 days ago
Phones banned at the bar: Why Gen Z is actually cheering the no-screen dining movement
RetailGen Z
Phones banned at the bar: Why Gen Z is actually cheering the no-screen dining movement
By Dave Lozo and Morning BrewApril 8, 2026
2 days ago
A woman shops in the produce aisle
EconomyInflation
‘You can never really catch up’: The Iran war is exacerbating already high grocery bills, and it will only get worse if the war continues, experts say
By Jacqueline MunisApril 8, 2026
2 days ago

Most Popular

A Meta employee created a dashboard so coworkers can compete to be the company's No. 1 AI token user—and Zuckerberg doesn't even rank in the top 250
AI
A Meta employee created a dashboard so coworkers can compete to be the company's No. 1 AI token user—and Zuckerberg doesn't even rank in the top 250
By Fortune EditorsApril 9, 2026
2 days ago
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
Economy
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
By Fortune EditorsApril 9, 2026
2 days ago
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
Investing
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
By Fortune EditorsApril 9, 2026
2 days ago
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
Innovation
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
By Fortune EditorsApril 10, 2026
21 hours ago
Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
Success
Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
By Fortune EditorsApril 10, 2026
13 hours ago
'I hate working 5 days': Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
Success
'I hate working 5 days': Zoom CEO says traditional work schedules are becoming obsolete—and predicts a 3-day workweek by 2031
By Fortune EditorsApril 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.