Dive Brief:

• Ravi Thanawala, Papa Johns CFO, has been appointed interim CEO, effective Thursday, following the chain’s announcement that CEO Rob Lynch is resigning to work as CEO at Shake Shack, according to a press release. 
• Lynch will provide support in an advisory capacity until April 30 to help with the transition. The board has begun a search for a permanent successor. 
• Lynch, who joined the pizza chain in 2019, helped turn the company around. Most recently, it enacted its Back to Better 2.0 strategy in which the company will increase marketing investments, provide new franchisee incentives to speed up North American development and bolster its international presence. 

Dive Insight:

When Lynch joined the chain, Papa Johns was still under fire following founder John Schnatter’s use of a racist term during a conference call with a PR firm. Even though Schnatter was later exonerated, the chain faced serveral quarters of shrinking sales, according to its 10-Ks for 2018 and 2019, with its comparable sales falling from Q4 2017 to the Q3 2019. In those years, the company experience net unit growth thanks to its international presence, while its North American unit counts fell.

Lynch managed to stabilize the brand and led it through the COVID-19 pandemic. In recent years, the chain’s success has been supported by its value menu, according to BTIG, and its launch of new menu items, like the Papadia, and new flavors specifically targeted at Gen Z and Millennial consumers. Those new, portable menu items were an early entry in the escalating competition between QSR chains broadly — and pizza brands in particular — over the snacking daypart.

At the end of 2023, Papa Johns’ switched up its marketing strategy and signed with Carat and The Martin Agency as it looked to improve the cultural relevance of its messaging.

Throughout 2023, Papa Johns made a number of changes to its C-suite. In September, the chain promoted Amanda Clark to international COO, though she soon left to assume leadership of another company, and put chief restaurant officer Joe Sieve in charge of its North American development. Earlier in the year, Papa Johns appointed a fast casual executive as its chief marketing officer; promoted Madeline Chadwick to chief corporate affairs officer; hired Patrick Coelho as SVP of development, with a focus on its North American franchising strategy; and hired Thanawala as CFO from Nike.

Thanawala, now the chain’s interim CEO, was in charge of financial operations at Nike’s largest division, which generated about $20 billion in annual revenue,according to the press release announcing his accession to the interim-CEO role; and served as CFO and VP of Converse, one of Nike’s major brands.

The board did not share a specific timeline for its CEO search, but the company said it would be comprehensive.

Correction: An earlier version of this article incorrectly stated when Papa Johns founder John Schnatter used a racist term. The article has been updated.