NEW YORK (AP) — Papa John's says a key sales figure dropped 10.5 percent in July, and that it can't predict how long and badly it will be affected by the fallout with its founder.
The pizza chain slashed its sales outlook for the year, and its shares fell more than 10 percent.
Last month, Forbes reported that Papa John's founder John Schnatter used the N-word during a media training call. Schnatter said the comment was taken out of context and has since criticized Papa John's for its handling of the matter.
Papa John's said sales dropped in the second quarter, before the controversy.
That underscores the multiple challenges facing Papa John's. It is trying to distance itself from Schnatter, its biggest shareholder and a board member. Meanwhile, Domino's Pizza has seen sales increase.