Pizza Hut and Papa Johns, two of the world’s largest pizza chains, are reportedly edging closer to deals that will take them private, Reuters has reported.
If the deals go through, it will be a major shakeup for a once-static segment of the QSR industry. Both publicly traded chains have struggled in the past couple of years to grow their sales even as Domino’s continues to assert its power through digital dominance.
In a Q3 earnings call in November, Papa Johns CEO Todd Penegor said he remains focused on the brand’s Back to Better 2.0 turnaround strategy. But he also said the company is “open-minded” about a sale. Papa Johns is set to close 200 locations this year and another 100 in 2027. Most are underperforming franchise-owned stores.
In March, Irth Capital Management, backed by Brookfield Asset Management, reportedly submitted a takeover bid of $47 per share for Papa Johns, valuing the brand at $1.5 billion. That wasn’t the first offer to buy the company, but sources told Reuters that investors believe a deal could be reached before Papa Johns’ first earnings call for 2027, scheduled for May 7.
Irth Capital Management was cofounded in 2024 by Sheikh Mohamed bin Abdulla Al Thani—a member of the Qatari royal family—and Matthew Bradshaw.
Meanwhile, Yum! Brands, the parent company of Pizza Hut, signaled last year that it was open to a buyout. According to Reuters, Yum!, which also owns KFC and Taco Bell, set a deadline this week for bids, with potential buyers including Sycamore Partners, LongRange Capital and Apollo Global Management. Apollo also made an offer to Papa Johns last October before rescinding it, suggesting that it’s eager to get into the pizza business one way or another.
The Economic Times attributed its own separate report about deals to acquire Papa Johns and Pizza Hut to “five people familiar with the discussions.”
“Public [QSR] stocks are under pressure as softer consumer demand collides with persistent structural cost headwinds,” Will Auchincloss, EY-Parthenon’s Americas retail sector leader, told The Economic Times. “Traffic has weakened as consumers pull back, and at the same time brands are navigating higher labor costs and a far more competitive value environment.”
