papa johns is seeing improvement in staffing levels for delivery drivers, CEO Rob Lynch told CNBC’s Jim Cramer on Monday.
“April was a challenging month, but our staffing situation has gotten progressively better. We’re starting to get drivers to come in and take orders… Our demand is still huge and it’s been a challenge to fill those orders,” Lynch said. in an interview on “bad moneyand added that alliances with door board, GrubHub and Uber Eats have helped mitigate labor challenges.
papa johns reported better than expected earnings and revenue in your last quarter. The company said supply availability and labor shortages have been some of the biggest hurdles for the company.
Shares of the pizza company fell 4.37% on Monday, hitting a new 52-week low earlier in the day.
As for other hiccups in Papa John’s operations, Lynch said that while inflation is driving up costs for the company, it is being cautious about price increases. Papa John’s raised prices by about 7% on average at its corporate stores last quarter.
“We haven’t seen this level of food inflation in about 40 years… We’re taking a long-term view here. We continue to attract new customers,” he said.
“So we’re not taking as many prices potentially as we need to to cover full cost, because we want to make sure that when we get through these tough times and get back to a more normalized cost rate, we’ll have those customers.”
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