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Papa John's Soars on Takeover Bid News
12 Mar
Summary
- Papa John's stock surged over 23% on takeover interest.
- Irth Capital reportedly submitted a $1.5 billion buyout offer.
- The pizza chain is evaluating the $47 per share bid.
Papa John's stock experienced a significant boost, climbing as much as 23% to nearly $40 in New York trading. This surge effectively erased its year-to-date decline of over 15% as of Tuesday's close. The sharp increase followed a report indicating fresh takeover interest from the Qatar-based investment fund, Irth Capital.
The pizza chain is currently reviewing a reported bid of $47 per share, which has the backing of Brookfield Asset Management. This offer values Papa John's at approximately $1.5 billion. The bid represents a substantial premium, reportedly around 50% at the time of its submission.
This reported interest comes at a challenging time for pizza chains. Papa John's and competitors like Pizza Hut have faced same-restaurant sales contractions for two consecutive years, unlike Domino's, which has maintained growth. Irth Capital, which previously held about 5% of Papa John's shares, had reportedly attempted an acquisition in 2025. This follows a previous withdrawn takeover offer from Apollo Global Management in November.
Papa John's CEO Todd Penegor stated in November that management is focused on maximizing shareholder value and remains open-minded about the best path forward. The company has not immediately responded to requests for comment regarding the latest bid.
