Papa John’s Stock Soars 30% on $2 Billion Take-Private Bid – Wall Street Bites Back

Papa John’s just became the hottest slice in private equity’s oven. The pizza chain’s stock rocketed after rumors surfaced of a $2 billion buyout—because nothing says ‘undervalued’ like a 30% single-day pop.

Wall Street’s latest flavor? Privatizing struggling brands, slashing costs, and flipping them like a dough toss. This time, it’s personal—and highly leveraged.

Bon appétit, shareholders. The vultures—er, investors—are circling.

Confident Investing Starts Here:

• Easily unpack a company''s performance with TipRanks'' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks'' Smart Value Newsletter

Why Is Papa John’s Attracting a Hefty Premium?

As of date, PZZA’s market capitalization stands at $1.6 billion, and its stock price closed at $48.20 before the acquisition news, implying a roughly 24% premium to Tuesday’s closing price. The exact details of the offer remain unknown at the moment.

Papa John’s, hailed as the third-largest pizza delivery brand globally, has consistently beaten earnings expectations in seven of the eight past consecutive quarters. The company is making solid efforts to improve its margins, while its revenue has remained stable over recent quarters. Moreover, PZZA trades at a discount to its peers Yum! Brands (YUM) and Domino’s Pizza (DPZ), making it an attractive investment opportunity.

Apollo and Irth Have United in an Unusual Partnership

Irth Capital is a small fund backed by Sheikh Mohamed al Thani of the Qatari royal family. The firm managed some $190 million of assets as of December 31, 2024. Although smaller compared to the giant PE firm Apollo, Irth already holds a 5% stake in Papa John’s, making it an APT suitor for the bid. Additionally, Irth has expertise in turning around consumer brands, such as mattress brand Casper and fried-chicken chain Bojangles. There were rumours about Irth’s interest in acquiring Papa John’s in February as well, when PZZA stock jumped 20%.

Meanwhile, Apollo Global is a large listed PE firm, with a current market capitalization of $82.8 billion. As of March 31, 2025, APO managed fee-generating assets (FGAUM) of $595 billion. Notably, the report suggests that Irth is yet to finalize its funding arrangements for the potential deal. In that case, Apollo could still proceed with the acquisition independently.

Is Papa John’s Stock a Good Buy?

On TipRanks, PZZA stock has a Moderate Buy consensus rating based on four Buys and three Hold ratings. Also, the average Papa John’s International price target of $47.33 implies 8.6% downside potential from current levels. Year-to-date, PZZA stock has gained 29.1%.