Resolved clauseRESOLVED: shareholders request that within six months, Papa John’s disclose what (if any) percentage of group-housed pork it currently uses domestically and establish measurable targets for eliminating or reducing gestation crates in its pork supply.
Supporting statementSUPPORTING STATEMENT: In 2022, a shareholder proposal at Papa John’s regarding animal welfare nearly passed, receiving 42% of the vote.
This proposal revisits the issue, in light of new company statements on the topic.
For context:
• In 2013, Papa John’s pledged to make “significant movement” away from gestation crates in its pork supply by 2022.
• These solitary confinement cages are so cramped, they prevent pigs from even turning around—and so controversial, eleven states ban or restrict their use. One alternative is using “group-housed” pork, where pigs at least spend most of each pregnancy in groups, rather than solitary crates.
• Papa John’s touted its pledge for nine years—including in its 2019 and 2020 corporate responsibility reports. During all that time, it neither reported progress nor indicated the goal might not be met.
• So, unsure of its progress, when the 2022 deadline arrived, a shareholder proposal sought an update.
• Papa John’s opposed it, saying that sourcing a significant amount of group-housed pork wasn’t “practical.”
• The proposal nearly passed anyway. As Institutional Shareholder Services (ISS) explained, Papa John’s commitment hadn’t “led to any substantial action,” and since it “neither met its goal nor informed shareholders of its progress, this proposal warrants shareholder support.”
Following that high vote, Papa John’s amended its position on the topic: Rather than continuing to claim (as it had in 2022) that using group-housed pork isn’t “practical,” a new statement published in 2023, claims that a significant source of such pork isn’t “yet available.”
But that’s a rather odd assertion.
In fact, just a month before Papa John’s made that statement, a National Pork Producers Council spokesperson said that over 40% of domestic pork production now uses some form of group housing.
Further, Wendy’s, Panera, Chipotle, Noodles & Co., Campbell Soup, Shake Shack and others have been able to switch to group-housed pork for 100% of their domestic supply. And McDonald’s, Burger King, Jack in the Box, Aramark, Sodexo, Conagra, General Mills, and other companies are on track to do so as well—with McDonald’s, for example, at 91% compliance already.
This raises serious questions about Papa John’s new claim and its direction on this important issue.
For example: is Papa John’s sourcing any group-housed pork?
Papa John’s 2023 10-K says animal welfare concerns may have a “material adverse effect on our financial results.” And clearly, more details regarding this particular concern—which the company has claimed to be addressing for a decade — are needed.