MW Papa John's stock rallies, as report adds to takeover speculation

By Bill Peters

StreetInsider reports that Papa John's received a $64-a-share offer from Apollo Global Management

So far this year, Papa John's stock is up 11.1%.

Shares of pizza chain Papa John's rallied on Monday, following the latest report that it could become a takeover target, as the restaurant industry struggles with inflation-battered consumers.

The stock's 9.8% move higher came after StreetInsider on Monday reported that Papa John's $(PZZA)$ received a $64-a-share acquisition bid from Apollo Global Management Inc. $(APO)$.

Apollo declined to comment. Papa John's said it did "not comment on market rumors." So far this year, Papa John's stock is up 11.1%.

StreetInsider's report followed a report from Semafor in June saying that Apollo and Irth Capital - a fund with backing from Sheikh Mohamed al Thani, who is part of the Qatari royal family - made an offer to take Papa John's private that would value Papa John's at some $2 billion. In February, Semafor reported that Irth - founded by Matthew Bradshaw and al Thani - had been weighing a takeover. Irth had previously disclosed a 4.99% stake in the pizza chain.

"The involvement of Apollo added financial scale and operational credibility to the bid narrative," Stephens analyst Jim Salera said in a research note on Monday.

Monday's report arrived as tariffs, weight-loss drugs and apprehensive low-income customers, who have been hit harder by the past few years of inflation, weigh on restaurant stocks. After years of nudging menu prices higher, fast-food chains and other restaurants have tried to win over customers with bigger value deals.

Domino's Pizza Inc. $(DPZ)$, Papa John's larger rival, reports quarterly results on Tuesday. Papa John's third-quarter results are due next month. Salera said the results from Papa John's would likely "show continued traffic softness" as the chain develops its marketing-spending strategy.

The company has tried to improve product quality and make service more consistent by recalibrating its ovens and regulating bake times and temperatures. It has also relaunched its loyalty program.

But after Papa John's last round of results in August, BTIG analyst Peter Saleh said the company was in a "perpetual turnaround." He kept his neutral rating on the stock at that time.

"While we are encouraged with the progress management laid out this morning, the company is also spending a lot to achieve this, and we're skeptical the company can shift the advertising burden back to franchisees," he said in a note at the time.

"We also still dismayed by basic operational gaps, high unit-closure rates, never-ending international restructuring and dismal earnings results," he continued, adding: "We remain Neutral."

-Bill Peters

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October 13, 2025 17:25 ET (21:25 GMT)

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