"The statements made on our earnings call were describing the factors that impact our business and we sincerely apologize to anyone that thought they were divisive. Simply stated, racism has no place in our society", his statement added.
Papa John's stock dropped almost 5 percent by the close of the stock market Wednesday, the lowest it's been in almost two years.
Schnatter resigned from the University's Board of Trustees Wednesday hours after the NAACP called for him to step down. on the heels of Schnatter confirming reports he dropped the racial epithet back in May. The fallout resulted in Schnatter resigning from his role as CEO in December.
Representatives of the outside marketing firm, Laundry Service, declined to comment on the incident.
Schnatter, a Trump donor who stepped down as the pizza corporation's chief executive officer in January after he said that National Football League player protests were hurting his pizza sales, was the subject of a news report that documented his use of the racial slur in the business publication Forbes.
After Forbes magazine reported the gaffe, Schnatter said it was true he had used the "inappropriate and hurtful" word. According to Fox News, Mike Moore, who is the mayor of Schnatter's hometown of Jeffersonville, Indiana, has announced that they will be renaming a fieldhouse in the city so it will no longer feature the shamed founder's name. But its owner, Casey Wasserman, terminated the company's contract with Papa John's, according to reports. In February, the NFL cut its sponsorship ties with Papa John's, which had been a league sponsor since 2010.
Schnatter has a history of making political statements that have sparked controversy.