Nov. 4 at 8:59 PM
Papa John’s International shares fell nearly 20% on Tuesday after a Reuters report said Apollo Global Management decided to withdraw its offer to take the pizza chain private.
The stock had surged last month after reports that Apollo had made a
$64-per-share bid, though sources at the time cautioned that a deal wasn’t guaranteed. The private-equity firm has now reportedly backed off due to growing concerns about slowing consumer spending across the fast-food industry, which could weigh on sales and profitability.
Neither Apollo nor Papa John’s responded to requests for comment from Barron’s. The setback adds to what has been a difficult year for the pizza chain—its shares are down nearly 30% over the past 12 months. Investors will look for clues about the company’s outlook when it reports third-quarter earnings on Thursday.
$PZZA $APO