Pizza Panic: Apollo Kills $64/Share Papa John’s Buyout; Stock Plunges

Papa John’s stock dropped sharply on Tuesday. The plunge followed news that a major takeover deal fell apart. Private equity firm Apollo Global Management reportedly withdrew its offer. Apollo had planned to take the pizza chain private for $64 per share.

Sources say Apollo canceled the $2.1 billion bid about a week ago. The firm cited slowing consumer spending as a key factor. They noted challenges across the quick-service restaurant industry. Recent earnings reports from other restaurant chains show weakness. This indicated a softening market.

The stock dropped over 10% following the report. This withdrawal happens just before Papa John’s is scheduled to report its third-quarter earnings. The company is now projected to have lower profits compared to last year. While other investors remain interested, they question the $64 valuation. The failed buyout signals growing caution about the restaurant sector’s immediate financial health.