PZZA Stock Soars More Than 18% On Report Of Take-Private Bid At $1.5B Valuation

The Wall Street Journal reported, citing people familiar with the matter, that the Qatari-backed investment fund Irth Capital Management has submitted a bid to take Papa John's private.

• Papa John’s is now reviewing the bid but there is no guarantee that the bid will result in an agreement, the report said.
• For Irth, it is its second attempt at acquiring Papa Johns after it made an attempt last year alongside private-equity firm Apollo Global Management, sources told the Journal. 
• For fiscal year 2025, Papa John’s reported adjusted and diluted earnings per common share of $1.43, down from $2.34 in the prior year as it battles rising competition.

Shares of Papa John's (PZZA) rose over 18% on Wednesday following a report that the company has received a take-over bid valuing the business at about $1.5 billion.

The Wall Street Journal reported, citing people familiar with the matter, that the Qatari-backed investment fund Irth Capital Management has submitted a bid to take the pizza chain private.

As per the report, Irth offered to pay $47 per share. This represents a 44% premium from the stock’s closing price on Tuesday.

Papa John’s is now reviewing the bid but there is no guarantee that the bid will result in an agreement, the report said, while also highlighting the possibility of another suitor emerging.

Second Attempt

For Irth, it is its second attempt at acquiring Papa Johns after it made a bid last year alongside private-equity firm Apollo Global Management, sources told the Journal.

Irth is an existing shareholder in Papa Johns and has increased its effective stake to about 10%, the report added. A deal for Papa Johns would be one of Irth’s first major moves, the report noted.

Papa John’s FY25

For fiscal year 2025, Papa John’s reported total revenue of $2.1 billion, flat compared to the prior year, and adjusted diluted earnings per common share of $1.43, down from $2.34 in the prior year as it battles rising competition.

In February, the company committed to sharpening its marketing message in light of the competitive dynamics in its business. The company also said it will close underperforming restaurants.

“Optimizing our restaurant portfolio and strategically closing underperforming restaurants are among the most impactful actions we can take to improve restaurant profitability and fleet health,” CFO Ravi Thanawala then said.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around PZZA stock jumped from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

PZZA stock has fallen by about 17% over the past 12 months. 

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