Shaq is investing in 9 Papa John’s locations and joining the pizza chain’s board (PZAA)

Shaquille O’Neal is joining Papa John’s board of directors and investing in nine Atlanta area locations.
Papa John’s shares were up more than 3% following the news.
Watch Papa John’s trade live.

The NBA Hall of Famer Shaquille O’Neal is joining Papa John’s board of directors and investing in nine locations in the Atlanta area, the company said Friday. He will also become a brand ambassador for the pizza chain.

"We are thrilled to partner with Shaquille and welcome him to the Papa John’s Board," Papa John’s chairman Jeff Smith said in the press release. "Shaquille has an excellent entrepreneurial background, including as a restaurant franchise owner, and is a natural creative marketer."

Shaq is no stranger to the restaurant business. He currently owns a Krispy Kreme Donoughts franchise in the Atlanta area, and has previously owned 27 Five Guys Burgers and Fries locations, the press release said. He also owns a fast-casual fried chicken restaurant in Las Vegas and a fine-dining restaurant in Los Angeles.

Friday’s announcement comes amid a shakeup at the pizza chain. In February, the hedge fund Starboard Value invested $200 million in the company and named its chairman as CEO. A month later, Papa John’s settled its dispute with founder John Schnatter, who agreed to drop his lawsuit and resign as an independent director. Schnatter still owns about 30% of the chain.

Papa John’s is in the midst of reshaping its image. In December 2017, Schnatter stepped down as CEO after facing backlash for his criticism of NFL national anthem protests. Then, in July 2018, he stepped down as chairman after admitting to using a racial slur on a company conference call. In its most recent earnings report, Papa John’s said it spent millions of dollars on ‘re-imaging costs’ at the end of last year.

Papa John’s was almost 18% this year through Thursday, trading near $47 a share.

Markets Insider

NOW WATCH: The founder and CIO of $12 billion Ariel Investments breaks down how his top-ranked flagship fund has crushed its peers over the past 10 years