Private investment giant Apollo Global Management has withdrawn its $2.1bn offer to acquire pizza chain Papa John’s International at $64 per share, according to a report by Reuters citing people familiar with the matter.
The move came ahead of the company’s third-quarter earnings release showing continued pressure on margins and slowing consumer demand.
The private equity firm reportedly pulled the bid last week, reflecting broader caution in the quick-service restaurant sector as inflation and weakened discretionary spending weigh on valuations. Shares in Papa John’s fell more than 20% on Tuesday following reports of Apollo’s withdrawal, cutting the company’s market capitalisation to around $1.27bn.
While some investors remain interested in a potential buyout, Reuters’ sources believe few are willing to match Apollo’s earlier valuation amid concerns over high closure rates, operational challenges, and declining profitability. Papa John’s reported a 23% drop in profit in the second quarter despite modest revenue growth.
