Sometimes the grass isn’t always greener on the other side. Pizza chain Papa John’s must have realized this as it’s dropping KPMG as its independent auditor in favor of EY, which audited the company’s financial statements from 1990 to 2017.
EY will take over Papa John’s external auditing duties for the fiscal year ending Dec. 29, 2019.
Reuters reported that in February, Papa John’s disclosed that it was unable to file its annual report for the year ended Dec. 30, 2018, on time because KPMG needed more time to complete its audit of the company’s financial statements.
When Papa John’s annual report was eventually filed in March, KPMG said in it that it found the company did not maintain effective internal control over its financial reporting for that year.
In its amended filing in May, Papa John’s said although it found some “material weaknesses” in its internal reporting controls, there was no need to restate its financial statement, according to Reuters.
Founded in 1984 by John Schnatter (the old drunk guy in the photo above), the pizza chain saw its revenues fall to $1.57 billion in 2018 and analysts expect revenues to be even lower this year.
Schnatter is no longer CEO but remains the company’s largest shareholder and Peyton Manning’s biggest fan.