Time for the NFL, the players, and it’s owners to do something. Forget about whether you agree or disagree with why the protests are happening. It is crushing American businesses, many of which average Americans are invest in through their modest 401ks and other accounts. Many blue collar pensions are feeling the hit today after a major NFL advertiser cited the damage from the protests:
Papa John’s (NASDAQ:PZZA) is down 10% after management reels in guidance after a terrible quarter. For Q3, system-wide comparable sales were up 1.0% for the North America business and increased 5.3% at International stores. Note, those domestic sales are 80% weaker than the growth last year. OUCH.
The pizza chain now expects full-year North American comparable sales growth of 0% to +1.5% vs. +2% to 3% prior view. Full-year EPS growth of 3% to 7% is expected vs. a prior outlook range of 8%-12%.
During the company’s earnings call, Papa John’s CEO John Schnatter laid blame on the NFL leadership for how it has handled anthem protests.
“The NFL has hurt us by not resolving the current debacle to the players’ and owners’ satisfaction. The current controversy has polarized the customer…and the country” he stated.
Schnatter said he thought the issue should have been nipped in the bud over a year ago. Papa John’s has a significant partnership with the NFL. We told you about how the ratings decline was impacting advertisers. We also cautioned that some would pull out.
It is now official, the protests are hitting average Americans. Disagree? Comment below after signing up for a free account.