Showing just how hard it will be to divorce its image from its founder's, Papa John's said it may not be until next year that the process of collecting all materials with Schnatter's image from its stores would be complete.
Papa John's says a key sales figure dropped 10.5 percent in July, and that it can't predict how long and badly it will be affected by the fallout with its founder.
Papa John's lowered its full-year earnings estimate to between $1.30 and $1.80 due to the weak quarterly results and said it now expects North America same-store sales to fall by between 7% and 10% for the year.
"While results have been challenged by recent events, we are committed to these strategic priorities and continue to believe that they will lead to enhanced performance", Ritchie said. And Schnatter, who remains its largest shareholder, even issued his own financial chart.More news: Bangladesh Protests Continue for 9th Day
In a statement on Tuesday, Schnatter said he is concerned about the direction of the company under Ritchie, according to CNBC.
Reiterating previous comments, Ritchie said in the earnings release: "We have also begun an external audit of Papa John's culture and will address any improvements that are recommended at its conclusion". He said in a statement that he is 'not going away'.
Papa John's has hired new agencies - Endeavor Global Marketing on creative and Weber Shandwick's Powell Tate on PR, to help it try to mitigate the situation. Meanwhile, rival Domino's Pizza has seen sales increase.
'The company is trying to deflect attention from the source of the problem - management's ongoing failures with regard to financial performance - and blame me for its problems, ' he said.
"We are not dependent, nor should we be, on one person", he said.More news: Angelina Jolie Explains Why She Requested Child Support from Brad Pitt
Schnatter stepped down as Papa John's CEO last January.
"I couldn't be more excited than I ever have been in my 22 years with the Papa John's brand to flip the switch and look forward (and) not be distracted by the words and comments of one individual", Ritchie said.
Papa John's is still searching for the right candidate to be its next CMO.
Revenue was down by 6.2 percent to $408 million and net income fell by just under 50 percent to $11.8 million, or 36 cents per share, down from $23.5 million, or 65 cents per share in the quarter ended June 25, 2017.
Days after the racial slur scandal broke, Papa John's announced that it would remove Schnatter's image from its marketing materials, where he featured prominently.More news: Michael Fish's NBC26 Storm Shield weather forecast