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Papa John’s blames the NFL for declining sales. But is that the whole story?

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Let’s face it, Papa John’s serves a subpar pizza, but they’re not the only ones. Their pizza is on the same level as Domino’s, Pizza Hut, and other cardboard crust and sawdust cheese products. So are their disappointing sales the result of the NFL or a more substantial issue within the company?

Papa John’s disappointed earning $.60 instead of their expected $.61 earnings per share for its 2017 Q3. Q3 does not include much of the results from this year’s NFL season. The bigger picture shows that in the last 12 months Papa John’s shares have fallen 17.35%.  Its direct competitors YUM! Brands and Domino’s have seen the opposite return. Compared to its competitors, Papa John’s has lower margins and is less ambitious in its expansion.

Furthermore, other players, from Uber to BWW, are jumping into the delivery game taking away a historically dominant industry advantage. Many restaurants are changing with the times as Americans are raising their standards in favor of higher quality food. McDonald’s is a well documented case study of a low quality restaurant trying to adjust to the times.

Papa John’s can blame the NFL for its shortcomings, and to many, this comes off as a scapegoat. However, Papa John’s also has a history of crediting its relationship with the NFL for its success.

Perspectives

Bloomberg: Papa John’s Blames the NFL for Hurting Pizza Sales

“The NFL has hurt us by not resolving the current debacle to the players’ and owners’ satisfaction,” Schnatter, who serves as the pizza chain’s chairman and chief executive officer, said on a conference call. “NFL leadership has hurt Papa John’s shareholders.”

It’s hard to quantify the connection between the NFL and pizza sales, but Papa John’s did post disappointing results in the latest quarter. Its shares fell as much as 13 percent on Wednesday — the most in two years — after same-store sales missed analysts’ estimates. The Louisville, Kentucky-based company also trimmed its revenue and profit forecasts for the year.

Schnatter has appeared frequently in advertisements during NFL games, including alongside star quarterback Peyton Manning, a franchisee of the chain’s restaurants in Colorado. Back in 2014, when Papa John’s posted a nearly 10 percent gain in North American same-store sales, the company credited its close relationship with the NFL and Manning for driving its business in the U.S.

“This should have been nipped in the bud a year and a half ago,” Schnatter said on the call. “Like many sponsors, we’re in touch with the NFL. Once the issue is resolved, we’re optimistic the NFL’s best years are ahead.”

Hotair- Papa Johns: NFL’s Bad Leadership Is Damaging Our Bottom Line

One major NFL sponsor has started to get crusty about the impact of the national-anthem controversy on their business, delivering a piping-hot shot at the league’s big cheese. John Schnatter, familiar to fans as Peyton Manning’s foil in Papa John’s commercials, blamed disappointing third-quarter results on NFL commissioner Roger Goodell in an investor call. Shares in the pizza maker fell 13 percent at one point today, and Papa ain’t happy.

It’s a direct hit on Goodell and his leadership team, and it comes at a bad time. The owners are working on a five-year contract extension for the commissioner on the basis of his negotiating prowess in TV contracts and collective bargaining agreements. Jerry Jones is spearheading an effort among owners to stop the extension

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Final Thoughts

Garbage fast food is having a tougher time than in years past. With so many local pizza shops that make a better pie, getting Papa John’s, Domino’s, or Pizza Hut is the wrong choice every time unless you’re feeding the masses of misbehaved screaming children. Football season is only five months of the year. The NFL cannot conceivably be at fault for the other disappointing seven months (using stock price as metric). There are other factors requiring additional articles as to why several chain restaurants are struggling to keep up. In keeping with the times, Papa John’s has continued riding the NFL tide. Yet with ratings down, Papa John’s has fewer people watching their high dollar advertisements. Less effective advertisements means fewer people ordering pizzas (in season).

With the five months of football season, Papa John’s expects its expensive relationship with the NFL to pay dividends. They are smart to see that the NFL is handling the protest situation poorly and weaken ties. The marketing dollars could be used in a more effective avenue. John Schnatter might be pointing fingers at a convenient target, but this target is not innocent.

Education

Whoopi is right about the behavior of UCLA Basketball players in China

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Whoopi Goldberg

I’m not a big fan of Whoopi Goldberg, okay but I have to tell you that I agree with her regarding the following statement.  This is in regards to a couple of UCLA basketball players who thought they could take something from a store in China and not pay for it.

You embarrassed your families, you embarrassed the country, and you embarrassed the president. Now I’m not a big fan of the president, but the fact that he had to call and get your asses out of there is not anything to be proud of or think is cool.  If this isn’t the stupidest thing a young person has done, particularly if you’re over six-feet tall, and black… is this just the ridiculous stupidity of youth?

Let me add one more thing. You’re an embarrassment to UCLA itself, and their athletic department as well.  Now I am not a big fan of those who run academia, but if these jerks are given the right punishment, I shall give the university credit and praise for doing it.  All right UCLA, the ball is in your court.  Do something right for once.

Further Reading

Whoopi Goldberg to ‘Stupid’ UCLA Players: You’re Fortunate Trump Could ‘Get Your A**es Out’ of China

http://freebeacon.com/issues/whoopi-goldberg-ucla-players-fortunate-trump-get-out-china/“Now, you’re in China—you’re this big!” she said, reaching high into the air to indicate the players’ height. “It’s not like you’re gonna blend, you’re not going to blend in, run out.”

Goldberg said their families and mentors had no doubt told them numerous times not to do things like this, and she said the foolishness of youth is the only explanation for something so dumb.

President Trump says ‘You’re welcome’ after UCLA Bruins players thank him for help with China incident

http://www.espn.com/mens-college-basketball/story/_/id/21432885/president-trump-says-welcome-ucla-bruins-players-thank-help-china-incidentUCLA athletic director Dan Guerrero said freshmen LiAngelo Ball, Cody Riley and Jalen Hill stole from three stores, were arrested and surrendered their passports. Trump, who was already on an Asia trip, spoke to President Xi Jinping of China about the incident, and the players were allowed to return to the United States on Tuesday.

On Wednesday, all three read prepared statements at a news conference in which it was revealed that they have been suspended from the team indefinitely. They thanked the Chinese government and police for how they were treated and United States officials for helping secure their release.

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Entertainment and Sports

Jerry Jones to Roger Goodell: “I’m gonna come after you with everything I have”

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Jerry Jones to Roger Goodell Im gonna come after you with everything I have

The NFL has problems, and I’m not talking about their lack of star power at the quarterback position. From dwindling attendance to the public relations nightmare of players kneeling, the NFL under Commissioner Roger Goodell has been in a state of a decline for a while.

Jerry Jones agrees. The Dallas Cowboy’s owner had some harsh words for the commissioner.

NFL commissioner Roger Goodell in bitter battle few saw coming led by Dallas Cowboys owner Jerry Jones

http://www.espn.com/espn/otl/story/_/id/21441056/nfl-commissioner-roger-goodell-bitter-battle-saw-coming-led-dallas-cowboys-owner-jerry-jones“I’m gonna come after you with everything I have,” Jones said. Then he mentioned Deflategate. “If you think Bob Kraft came after you hard, Bob Kraft is a p—y compared to what I’m going to do.”

Nobody knows what Jones is going to do. But at the age of 58, Goodell is fighting to keep his job. In public, he looks fresh and energetic, and he is more resolute than ever to leave with a legacy of having come close to fixing football’s long-standing issues. Up close, though, his face has changed due to relentless stress; it is now sallow and lined and tired. Roger Goodell is in a battle few saw coming, with the league’s membership teetering on an all-out, unprecedented civil war.

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Entertainment and Sports

16-year-old accused Sylvester Stallone of forcing her into a threesome with his bodyguard

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16-year-old accused Sylvester Stallone of forcing her into a threesome with his bodyguard

As Hollywood, Washington DC, and everywhere in between seems to be getting rocked by sexual misconduct scandals, Sylvester Stallone has had one from his past creep back up. An unnamed 16-year-old girl signed a “no-prosecution form” for police in 1986 claiming Stallone forced her to engage in a “threesome” with his bodyguard.

The young fan reported she was given Stallone’s room key at the Las Vegas Hilton while he was filming Over the Top. She used the key to go to his room and began having intercourse with him. Then, she claims he called for his bodyguard who was in the bathroom and forced her to perform other sexual acts with them simultaneously.

She also said Stallone threatened to “beat her head in” if she told anyone about the incident.

My Take

As with so many reports coming out in recent weeks, this one seems credible. It demonstrates a trend that is now being exposed, one where men of power take advantage of women (and sometimes men) for the sexual gratification.

This isn’t new. It’s just coming out now as women are getting the courage to speak out.

Further Reading

Sylvester Stallone accused of forcing 16-year-old girl into threesome

https://pagesix.com/2017/11/16/stallone-accused-of-forcing-16-year-old-into-threesome/“She indicated that if the sexual encounter had only been with Stallone, she would not pursue this matter, but due to the fact that Mike, the bodyguard became involved in the sexual incident, she didn’t know what she wanted to do,” the report says.

The teen ended up signing a no-prosecution form and the issue was dropped, according to the Daily Mail.

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