Papa John's Founder To Diversify Portfolio

(Thursday, June 14, 2007) - Papa John's International founder John Schnatter plans to sell up to 1.8 million shares of the Louisville-based pizza-delivery chain's stock over the next year.

If all those shares are sold, it would cut his stake in the company to less than 16 percent.

"It's just continued diversification of John's portfolio," said Lance Tucker, an accountant for Schnatter. "There's really nothing more to it than that."

Tucker declined further comment.

Schnatter's trading plan, disclosed yesterday in a filing with the Securities and Exchange Commission, allows him to sell stock between June 22, 2007, and -- at the latest -- June 30, 2008, "subject to certain minimum price thresholds" that weren't disclosed.

The plan takes advantage of an SEC rule that allows company insiders to sell at pre-determined times to help avoid running afoul of insider-trading restrictions.

At current prices, the 1.8 million shares are worth nearly $53 million. Schnatter would be left with about 4.7 million shares worth almost $140 million and, based on current holdings by other shareholders, would remain the company's largest investor.

Schnatter last month gave up his salary and removed himself from an executive role in the company, but he remains chairman of the board.

As of June 4, Schnatter had sold $48.3 million worth of Papa John's stock in recent weeks. It represents the Louisville businessman's largest sale of shares since founding the company 22 years ago in Jeffersonville, Ind.

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