Papa John’s International (Nasdaq:PZZA) today announced a restructuring of its management team and that Dru Milby, its senior vice president, chief financial officer and treasurer, is leaving the company.
“We appreciate Dru’s service to the company over the last 10 years and wish her the best,” said John Schnatter, Papa John’s Founder and Chief Executive Officer.
The company also announced that the special charge that the company will take in its fourth quarter ended December 31, 2000, principally under Statement of Financial Standards No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” will now approximate $22 to $28 million, exceeding the company’s previously announced estimate of $10 to $14 million. The final amount and details of the special charge will be included in the company’s fourth quarter earnings release scheduled for February 27, 2001.
Following a meeting of its Board of Directors today, the company announced its realignment into four key groups – Operations, Administration, Development and Resource/Support, each reporting to CEO John Schnatter.
Operations. Robert Wadell has been named Chief Operating Officer. Wadell has been with Papa John’s since 1990, serving as President of the company’s wholly-owned commissary and distribution subsidiary, PJ Food Service, since 1995. Wadell will continue as President of PJ Food Service, while also assuming responsibility for Corporate Restaurant Operations and Support Services. Mike Cortino will continue as Senior Vice President, Corporate Operations, leading seven regional Operations Vice Presidents responsible for 600+ company-owned restaurants.
“Under Robert’s leadership, PJ Food Service has developed the best dough production, quality control and distribution network in the business,” said Schnatter. “We think it makes sense for Robert to apply many of the same disciplines to our restaurants, and other production and operating aspects of our business, which have made PJ Food Service successful.”
Administration. Julie Larner has been named Senior Vice President and Chief Administrative Officer, responsible for Finance, Information Systems and Office Services. Larner has been with Papa John’s since 1992, serving as PJ Food Service Controller from 1992 to 1997 and its Vice President of Finance and Administration since 1998. David Flanery will continue as Vice President of Finance and Principal Accounting Officer, leading Financial Planning and Analysis, Financial Reporting, Treasury and Tax.
Development. Chuck Schnatter, Senior Vice President and General Counsel, has been appointed Chief Development Officer, responsible for Legal, Restaurant Development, International Operations and Franchise Sales. Schnatter has been with Papa John’s since 1991, serving as General Counsel and Secretary since 1991 and Senior Vice President since 1993. Barry Barron, Senior Vice President of International Operations, has left the company to join a financial services company; his responsibilities are being assumed by other members of the International team.
Resource/Support. Mary Ann Palmer has been named Senior Vice President and Chief Resource Officer, responsible for Franchise Operations and Business Consulting, Education and Training, Human Resources, Field Marketing and Internal Communications. Palmer joined Papa John’s in 1996 as Senior Counsel, serving as Vice President, Education and Training from 1997 to 1999 and Vice President, People, since 1999.
Syl Sosnowski, who has been with Papa John’s since 1995, will continue as Vice President of Marketing, reporting to CEO John Schnatter. Vice President positions in the areas of Marketing and Sales, Marketing and Operation Services, and Information Systems have been eliminated as part of the restructuring.
“More than ever, we have to stay focused on the basics of our business, and run it lean and mean, to make gains in this very competitive marketplace,” said John Schnatter. “We believe this streamlined management structure allows us to better serve our restaurants and franchisees and positions our system for continued success.”
The company also announced that it expects 2001 earnings in the range of $1.85 to $2.15 per share (before the impact of any share repurchases during 2001). Additional guidance for 2001 will be provided with the company’s fourth quarter earnings release, and the company intends to narrow its projected 2001 earnings range as warranted as the year proceeds.