Apollo Global Management has pulled its offer to take pizza chain Papa John's private at $64 a share, sources familiar with the deal told sources, as a slowdown in consumer spending weighs on the restaurant industry.
The decision comes ahead of Papa John's scheduled third-quarter earnings report on Thursday, Reuters reported.
The private equity firm withdrew its bid roughly a week ago, according to the sources, citing weaker demand for fast-casual dining.
Apollo had previously submitted a joint offer with Irth Capital Management for just above $60 per share earlier this year, before submitting a solo bid in early October. Neither Apollo nor Papa John's immediately responded to requests for comment.
Papa John's stock reacted sharply to the news, dropping 10% on Tuesday despite a slight improvement in retail sentiment.
"$PZZA something is iffy about this whole thing. Rumor of withdrawn offer after they opened the books. I'm thinking this is a power move to force the board's hand," one retail investor wrote on Stocktwits, reflecting ongoing market uncertainty.
Wall Street analysts have already lowered their earnings estimates for Papa John's ahead of the report.
According to Zacks, earnings per share are expected to fall 7% year-over-year to 40 cents, while revenue is projected to rise 3.8% to $525.88 million.
Less than an hour before today's market close, someone AGGRESSIVELY sold $2.4 million worth of Papa Johns $PZZA $60 + $50 strike call options exp 1/16/26. After the bell, it was announced that Apollo withdrew its $2.1 billion bid to take pizza chain private. Someone ALWAYS knows,… pic.twitter.com/U0zSWduOAV
— Financhle (@Financhle) November 5, 2025
Apollo Pauses $64-per-Share Papa John's Bid
In the second quarter, the company reported a 4% increase in sales to $529.2 million, but profits dropped nearly 23% to $9.7 million.
Some analysts remain cautious about Papa John's turnaround efforts. Peter Saleh and Ben Parente of brokerage firm BTIG highlighted "basic operational gaps, high unit closure rates, never-ending international restructuring, and dismal earnings results" in a research note earlier this year.
The move by Apollo comes amid broader challenges for the restaurant sector.
According to Stockwits, recent earnings from Chipotle Mexican Grill and Cava Group signaled softer consumer demand, making investors more hesitant to meet the $64 per share valuation.
While private equity interest in restaurants is still active—Denny's Corp. was acquired for $620 million earlier this week—Apollo appears to have pulled back until market conditions improve.
Papa John's, founded in 1984 and headquartered in Atlanta and Louisville, has nearly 6,000 restaurants across about 50 countries.
The chain's stock has gained 5.8% year-to-date, with a market capitalization of $1.42 billion as of Tuesday.
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