Schnatter’s image is very closely tied to the company and he is pictured on its pizza boxes.
Schnatter, who stepped down from the post of CEO seven months ago, resigned as chairman earlier this week after admitting and apologizing for using the N-word during a May conference call. Schnatter, who owns a 24 percent stake in Papa John’s, remains on the company’s board.
The incident came to light after Forbes magazine detailed it in an article Wednesday. Schnatter later confirmed he was on a call with marketing agency Laundry Service when he tried to downplay comments he had made about the National Football League last fall. He said, “Colonel Sanders called blacks n—–s” and never faced any public backlash at KFC.
Papa John’s shares were up more than 1 percent Friday.