Two of the US’s best-known pizza chains, Papa John’s and Pizza Hut, are moving closer to potential ownership changes amid private equity interest as separate sale processes gather momentum, according to a report by Bloomberg citing unnamed people familiar with the discussions.
Both brands are weighing transactions that could take them private, in moves driven by weakening consumer demand, rising input costs and intensifying competition in the quick-service restaurant sector.
Papa John’s has attracted interest from a consortium including Qatari-backed investment firm Irth Capital, which has previously tabled an indicative offer and is conducting due diligence, the sources said. Brookfield Asset Management is also understood to be involved in supporting the bid process. The company’s share price has fallen sharply over the past six months, reflecting ongoing operational challenges and softer trading conditions.
At the same time, Yum Brands is advancing a formal review of strategic options for Pizza Hut, with bidders expected to include a number of private equity firms. Sycamore Partners, Apollo Global Management and LongRange Capital are among those reported to be evaluating offers, as the company works towards a potential shortlist or exclusive negotiations following recent bid deadlines.
The renewed interest in both assets comes amid a broader recovery in corporate M&A activity, particularly in the consumer and retail space, where underperforming public companies are increasingly being viewed as candidates for private ownership and operational restructuring.
For potential buyers, both Pizza Hut and Papa John’s offer opportunities for operational turnaround, including estate rationalisation and cost restructuring, with private ownership seen as providing greater flexibility to execute longer-term changes.
Yum Brands has previously indicated that Pizza Hut requires significant operational overhaul, while Papa John’s has also faced calls for store closures and strategic repositioning as it works to restore growth momentum.
