Activist Hedge Fund Sees ‘Real Potential Upside’ in Papa John's
- Re-franchising could help chain to rebound, fund manager says
- Company also seen having existing strength in online ordering
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While others are running for the door, Legion Partners Asset Management LLC sees an opportunity at scandal-plagued Papa John’s International Inc.
The hedge fund, which labels itself as activist and is now one of the chain’s biggest shareholders, says Papa John’s can start boosting value for investors by selling restaurants to franchisees. There’s also room to improve Papa John’s governance and culture, as well as capitalizing on its existing strength in online ordering.