(CNBC) Papa John’s founder John Schnatter has resigned as chairman of the board after admitting and apologizing for using the N-word during a May conference call.

Shares of the pizza chain were up more than 5.2 percent in premarket trading Thursday — recovering all of the $96.2 million in market value the company lost after Schnatter’s comments were reported by Forbes the day before.

Papa John’s said in a statement late Wednesday night that it will appoint a new chairman in the coming weeks. Olivia Kirtley, the board’s lead independent director, will run the board until a permanent replacement is found, it added.

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