This is not a routine change of financial auditors…

In a development that will certainly raise eyebrows, according to a regulatory filing by Papa John’s International Inc, it has dismissed KPMG LLP as its financial auditor and has appointed Ernst & Young LLP in its place.

Earlier in February, Papa John’s has stated it was unable to file its annual report for the year ended Dec. 30, 2018, on time because KPMG required more time to complete its audit of the company’s financial statements.

Following the filing of the annual report in March, KPMG had said it found the company did not maintain effective internal control over its financial reporting for 2017-2018.

In May 2019, Papa John’s made an amended filing in which it said although it found some ‘material weaknesses’ in its internal reporting controls, there was no need to restate its financial statement.

Papa John’s, which settled a bitter fight with its founder John Schnatter over control in March 2019, has been working to fix its brand image after Schnatter reportedly used a racial slur on a media training conference call in 2018.

Incidentally, Schnatter has cut his stake to around 19% as of May 16 in Papa John’s after reaching a settlement.

As part of a campaign to boost its image, Papa John’s has named former basketball star Shaquille O’Neal as its board member, investor and as its brand ambassador in March.

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