Apollo Global pulls $64-per-share takeover offer
Shares of Papa John’s tumbled 10% on Tuesday after Apollo Global reportedly withdrew its offer to take the pizza chain private. The private equity firm, alongside Irth Capital Management, had previously submitted a bid valued at $64 per share, but backed away from the proposal about a week ago, according to Reuters.
Neither Apollo nor Papa John’s has publicly commented on the report. The move comes just days before the company is scheduled to release its third-quarter earnings on Thursday.
Stock under pressure amid consumer slowdown
Papa John’s stock has fallen nearly 30% over the past year, and Tuesday’s decline adds further pressure. The broader restaurant and consumer sectors have also seen weaker demand, with inflation and rising costs impacting consumer spending patterns.
Chipotle recently reported a 0.8% drop in customer traffic during its third quarter, the third straight quarter of declines. Similarly, Procter & Gamble noted in October that lower-income consumers are cutting back significantly on discretionary purchases.
Industry shakeups as Pizza Hut faces review
The news of Apollo’s withdrawn offer comes on the same day Yum Brands announced it is reviewing strategic options for Pizza Hut, following prolonged struggles in the highly competitive pizza segment.
This development adds to a string of deal-related headlines in the food service industry, as chains adapt to changing consumer behaviors and economic pressures.
With Q3 results looming, all eyes are on whether Papa John’s can reassure investors and show signs of recovery amid sector-wide headwinds.
