John Schnatter, founder and the face of Papa John’s (PZZA), has stepped down as chairman of the company after news that he used a racial slur during a conference call in May.

In an emailed statement to Forbes on Wednesday, Schnatter confirmed his use of the word during a “media training session,” and said, “Regardless of the context, I apologize. Simply stated, racism has no place in our society.”

News of the incident was followed by a 4.8% drop in share price of Papa John’s by Wednesday’s close.

Yet, the company has surged nearly 12% on Thursday after Schnatter officially resigned as chairman of the company’s board.