Two major pizza chains familiar to Delaware families are moving closer to changing hands as both companies face mounting financial pressures from increased competition and rising food costs.
Papa John’s International and Pizza Hut, which is currently owned by Yum Brands, are in serious discussions with potential buyers who could take both companies private, according to five industry insiders with knowledge of the negotiations.
The talks would remove both pizza brands from public stock trading, allowing new management to restructure their operations without the pressure of quarterly financial reporting requirements.
Papa John’s stock has tumbled 28% in the past six months, closing at approximately $34.99 per share on Tuesday. However, the company received a $47 per share buyout proposal in March from Irth Capital, a Qatari-backed investment firm supported by Brookfield Asset Management, according to two sources briefed on the offer.
Irth Capital has spent the last month conducting detailed financial reviews of Papa John’s operations while negotiating a potential purchase. Some industry watchers believe a deal could be finalized by May 7, when Papa John’s reports its quarterly earnings, though sources warn nothing is guaranteed.
Pizza Hut’s parent company Yum Brands has established another deadline this week for interested buyers to submit their final bids, according to three people involved in those discussions.
Several private equity companies are competing for Pizza Hut, including Sycamore Partners, Apollo Global Management, and LongRange Capital. Yum Brands may select a preferred bidder for exclusive negotiations following this week’s submission deadline.
However, sources caution that bidders might not submit offers this week, and Yum Brands could retain ownership or spin off the chain if the proposed prices fall short of expectations.
When contacted for comment, representatives from Yum Brands, Papa John’s, Irth, Apollo, and Sycamore declined to respond. LongRange Capital did not return requests for comment.
The acquisition interest comes as restaurant companies nationwide grapple with cost-conscious consumers and higher ingredient prices due to ongoing food inflation over the past year.
Several smaller restaurant chains have already left public trading in 2025, including Denny’s, which sold for $620 million, and Potbelly, purchased by convenience store chain RaceTrac for $566 million. California Pizza Kitchen was acquired by private investors in December.
“Public quick service restaurant stocks are under pressure as softer consumer demand collides with persistent structural cost headwinds,” explained Will Auchincloss, Americas retail sector leader at EY-Parthenon. “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.”
Papa John’s has struggled with declining same-store sales, reduced revenue, and leadership instability since founder John Schnatter’s departure in 2018. The company’s stock price reached approximately $130 per share in late 2021 before its recent decline.
Pizza Hut has similarly experienced falling sales, becoming a financial burden for Yum Brands while sister brands Taco Bell and KFC show stronger performance. Any new owner would need to modernize hundreds of outdated locations, a process that would be easier without public scrutiny of quarterly earnings.
Both pizza companies have acknowledged the need to close hundreds of underperforming locations to improve profitability.
“For certain restaurant chains, being private offers flexibility to reset the business and invest through this cycle without the pressure of quarterly earnings,” Auchincloss noted.
Industry observers have closely monitored both chains since Yum Brands announced its strategic review of Pizza Hut in November, while Papa John’s rejected significantly higher buyout offers last year.
Papa John’s CEO Todd Penegor, who assumed leadership in late 2024, stated last month that he remains focused on operations despite Irth Capital’s reported offer. This follows previous acquisition attempts in the past year, including a joint bid from Irth and Apollo, and a separate Apollo offer that was later withdrawn.
During a March 12 UBS conference, Penegor addressed questions about potential buyers, saying he couldn’t discuss rumors or market speculation.
“I mean it’s been a constant, right? I’ve been in the role 18 months, and I think almost the full 18 months, we’ve always had some kind of rumor out there around the brand,” Penegor said.
