Papa John’s International, Inc. (PZZA) faces a proposed securities class action over statements about its transformation, and Pomerantz’s case notice says investors have until Nov. 2 to seek lead-plaintiff status.
William Hale filed the complaint Sept. 2 in the U.S. District Court for the Western District of Kentucky. It names Papa John’s, President and CEO Todd Allan Penegor, and Ravi Thanawala as defendants.
The complaint alleges statements about Papa John’s transformation progress and prospects for gaining market share misled investors. A company SEC filing says Thanawala resigned from his chief financial officer role effective June 30, 2026.
The complaint connects the company’s disclosures to a one-day share decline. Historical trading data shows PZZA closed at $29.75 on Aug. 5 and $24.64 on Aug. 6, a drop of $5.11, or about 17.2%.
Comparable sales across Papa John’s North American business were 8.3% lower year over year in the three months ending June 28. The company revised its 2026 projection for that measure to a 6% to 8% decline, from its earlier range of a 2% to 4% decline.
Papa John’s also suspended its quarterly dividend beginning in the third quarter. Penegor said the transformation was “taking longer than anticipated.” He pointed to a cautious consumer backdrop and intense discounting by quick-service restaurants, while order volumes also weakened.
The company said pausing the dividend would give it more room to fund transformation work, including franchisee support, customer growth efforts, technology and supply-chain improvements. Shareholders stopped receiving the quarterly payment beginning in the third quarter.
Federal securities law gives members of a proposed class 60 days after notice publication to seek lead-plaintiff status. Pomerantz’s notice lists Nov. 2 as the deadline for those motions.
Papa John’s plans to release its third-quarter results ahead of trading on Nov. 5. The company scheduled a conference call for 8 a.m. ET.
