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In a flurry of activity among the top pizza chains, Pizza Hut appealed its advertising case against Papa John's to the US. Supreme Court, Domino's Pizza geared up for a product launch while initiating the search for a new marketing chief and Papa John's president resigned amid financial volatility.
Blaine Hurst, Papa John's president and vice chairman, plans to step down at the end of the month in order to join eMac Digital LLC, an Internet start-up company designed to help McDonald's Corp. and other fastfood companies make online purchases. John Schnatter, chairman and chief executive of Papa John's, the No. 3 pizza chain, will assume the duties of president until a successor is named.
Hurst reportedly insisted that his departure is unrelated to Papa John's recently forecasting a significant earnings shortfall that sent its stock down more than 18 percent, to less than $20 a share.
"I was somewhat surprised by the hit the stock took, but I think the company has lost credibility with investors" said Mike Smith, a restaurant analyst with Fahnestock & Co. in Kansas City. "Any time a company makes projections and revises them downward, investors lose confidence in its grasp of its own numbers."
Officials for the Louisville, Ky.-- based chain said various factors played a role in the lowering of its estimates, including reduced franchisee-restaurant comparable sales and fewer outlet openings than were expected. The company also said lower operating margins were occurring at company-owned restaurants...