FILE PHOTO: Papa Johns logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

By Abigail Summerville and Svea Herbst-Bayliss

-Apollo Global has withdrawn its offer to take pizza chain Papa John’s private at $64 a share, according to two people familiar with the deal, as Wall Street waits to see what is expected to be a tough earnings report on Thursday.

The private equity firm pulled its bid, valued at around $2.1 billion, about a week ago as consumers tighten spending and the quick-service restaurant industry starts to stumble, these people said, asking not to be identified because the negotiations are private.

Apollo and Papa John's declined to comment.

Shares in Papa John's were down as much as 20.7% in afternoon trading on Tuesday after Reuters reported Apollo's bid withdrawal, giving the pizza chain a market cap of around $1.27 billion.

While some private equity investors are still interested in buying the pizza chain, people familiar with the bidding process said, they do not think it is worth $64 a share given softening consumer demand for fast-casual food.

Apollo and Irth Capital Management submitted a joint offer for the company at just above $60 per share earlier this year, before Apollo submitted a solo bid in early October, Reuters previously reported.

Papa John's plans to release its third-quarter results on Thursday. Wall Street analysts have revised their earnings per share estimates down 1.77% over the last 30 days, according to data compiled by Zacks.

Zacks expects the pizza chain will post earnings of 40 cents per share, a 7% year-over-year drop, and revenue of $525.88 million, up 3.8% from the year-ago quarter.

In the second quarter ended June 29, the company's sales rose 4% year-over-year to $529.2 million while its profits slid by close to 23% to $9.7 million.

Founded in 1984, Papa John's is co-headquartered in Atlanta, Georgia, and Louisville, Kentucky. It has close to 6,000 restaurants in roughly 50 countries and territories.

Peter Saleh and Ben Parente at brokerage firm BTIG said they were skeptical of a turnaround plan announced by the company in early August and were "still dismayed by the basic operational gaps, high unit closure rates, never-ending international restructuring, and dismal earnings results," according to a research note at the time.

Also on Tuesday, restaurant operator Yum Brands said it was reviewing "strategic options," including a possible sale, for Pizza Hut as the unit struggles to keep pace with other fast-casual dining brands like Taco Bell and KFC.

Last month, Chipotle Mexican Grill cut its annual sales forecast, warning that consumer spending on dining out is likely to remain under pressure through early 2026.

The month-long U.S. government shutdown is already taking a toll on company earnings, particularly among companies that rely on spending by lower-income consumers who are getting squeezed by rising healthcare costs, the potential loss of federal food benefits, and a wobbly job market outlook.

(Reporting by Abigail Summerville and Svea Herbst-Bayliss in New York, Editing by Dawn Kopecki and Nia Williams)