Shares of Papa John’s were trading over 10% higher following reports that ex-CEO, John Schnatter, is looking to team up with a private equity firm to buy back the company.
Schnatter was ousted as chairman and CEO role earlier this year when he used racist comments in a conference call. Private equity firms are concerned about the reputation risk of partnering with him CNBC reports.
Currently Schnatter owns about 30% of the company and has reportedly been turned down by a couple private equity firms already.
Keep this stock on your radar because if Schnatter can pull off a private equity deal then investors could be rewarded handsomely.