Papa John's Pizza's Chairman John Schnatter resigned as chairman of the board, the company said Wednesday.
Earlier in the day, he acknowledged using a racial slur during a May conference call and apologized following a media report that also said the pizza chain founder had graphically described violence against minorities.
On the May call, Schnatter reportedly said the N-word while complaining that a legendary fast-food chain founder had used the word in the past without being subjected to public backlash.
Shares of Papa John's Pizza (PZZA) fell nearly 6 percent after the report, and ended Wednesday trading down 4.8 percent.
The Forbes report prompted protest from the Louisville NAACP, which said Schnatter should either step down or be removed from the University of Louisville's board of trustees by the city's NAACP.