• 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

RetailCostco
Costco CEO promises the $1.50 hot dog isn’t going away: ‘The price will not change as long as I’m around’
By Sydney LakeMarch 21, 2026
15 minutes ago
AsiaPepsiCo
Three Asias, three different playbooks: How PepsiCo’s Anne Tse views the world’s fastest-growing snack market
By Nicholas GordonMarch 20, 2026
14 hours ago
A man walks between two luxury cars with the skyline of Dubai in the background.
RetailLuxury
The Middle East is one of the world’s fastest growing luxury markets—and the war in Iran may cut its sales in half, analysts say
By Sasha RogelbergMarch 20, 2026
18 hours ago
AsiaMitsubishi
How an MBA internship led Mitsubishi to e-commerce platform Yami—and into the U.S. snacks market
By Nicholas GordonMarch 20, 2026
1 day ago
Melissa Ben Ishay attends The Build Series to discuss Baked By Melissa at AOL HQ on October 14, 2016 in New York City.
C-SuiteFood and drink
Baked by Melissa’s founder was fired at 24. Two decades later, she’s ‘so freaking thrilled’ to step down as CEO
By Eva RoytburgMarch 19, 2026
2 days ago
Stephan Winkelmann, wearing a dark blue suit, speaks in front of a black background with the Lamborghini logo on it.
RetailAutos
Lamborghini is selling a record number of cars—but tariffs are eating its profits
By Sasha RogelbergMarch 19, 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.