Papa John’s Stock Drops After Apollo Global Withdraws Take-Private Offer

Shares of Papa John’s International Inc. fell 10% today after Apollo Global Management reportedly withdrew its offer to acquire the pizza chain.

The private equity firm backed away from its bid, valued at $64 per share, approximately one week ago, according to reports. Apollo had previously made the offer in conjunction with Irth Capital Management. This news arrives as the company prepares to release its third-quarter earnings report on Thursday, a report closely watched by investors given broader economic headwinds.

Papa John’s stock has declined nearly 30% over the past year, mirroring a trend seen across the restaurant industry as consumers grapple with rising inflation. Yesterday, Yum Brands announced it would be reviewing strategic options for Pizza Hut, signaling further challenges within the pizza sector. Recent earnings reports from companies like Chipotle indicate a slowdown in customer traffic, with executives noting a 0.8% decline, marking the third consecutive quarter of reduced visits.

Representatives for Apollo and Papa John’s have not yet responded to requests for comment. The withdrawal of the offer could potentially impact Papa John’s long-term strategy and future growth prospects; you can find more information about the company’s financial performance on their investor relations website.

The company is expected to provide further updates during its earnings report on Thursday.