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Here’s How Much Papa John’s Sales Plummeted After the Racial-Slur Incident

Photo: Spencer Platt/Getty Images

There’s a reason the head honchos at Papa John’s are in such a hurry to scrub any image of founder John Schnatter from their stores: After he used the N-word during a conference call, sales at the pizza chain dropped off — precipitously.

CNBC reports that from July 2 to July 29, same-store sales at Papa John’s plummeted 10.5 percent. In fact, the chain expects same-store sales to fall by 7 to 10 percent by the end of 2018. Previously, that expectation was just 3 percent. In response, shares of PZZA fell by nearly 12 percent on Tuesday.

Papa John’s still isn’t out of the weeds yet: Schnatter, who still owns nearly 30 percent of the company’s shares, is suing the chain to obtain documents related to the conference call, which his lawyer says will clear his name.

Papa John’s Sales Took a Nosedive After N-Word Incident