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Pizza Scandal May Have Killed Big Fast-Food Merger

Papa John's and Wendy's were talking before John Schnatter's mess
By Arden Dier,  Newser Staff
Posted Jul 19, 2018 1:11 PM CDT
Papa John's founder John Schnatter attends a meeting in Louisville, Ky, in October 2017.   (AP Photo/Timothy D. Easley, File)

(Newser) – The fallout from a scandal involving Papa John's founder is still being felt, with reports now suggesting the world's third-largest pizza-delivery company missed out on a possible merger. Per the Wall Street Journal, John Schnatter held preliminary merger talks with executives from Wendy's before a scandal erupted over his use of a racial slur. A source tells the Journal the talks have since "cooled." CNBC goes further, saying the talks have stopped altogether, with no deal imminent. Still, Papa John's shares rose as much as 6% with the news, per Business Insider. Schnatter retains a 30% stake in the company, and that pushed his stake to about $510 million. (Read more Papa John's stories.)

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