What Happened?

Shares of fast-food pizza chain Papa John’s (NASDAQ: PZZA) jumped 8.2% in the afternoon session after reports surfaced of a renewed takeover bid from private equity firm Apollo Global Management. 

Apollo reportedly offered to acquire the pizza chain in a take-private deal for $64 per share. This development followed a previous, lower bid made earlier in the year in collaboration with Irth Capital Management, which valued the company at just over $60 per share. According to reports, the situation remained fluid and a deal was not guaranteed. The fresh offer reignited investor interest and takeover speculation surrounding the fast-food pizza company.

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What Is The Market Telling Us

Papa John’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 7.1% as reports of a $64-per-share acquisition bid from private equity firm Apollo Global Management continued to fuel investor interest. The stock's move followed a significant jump in the previous trading session when the news first surfaced. The offer from Apollo added to ongoing takeover speculation surrounding the pizza chain, which included earlier reports of a potential bid involving Apollo and Irth Capital. While both Papa John's and Apollo declined to comment on what they called "market rumors," the potential for a deal appeared to resonate with investors. An analyst noted that the involvement of a major firm like Apollo added "financial scale and operational credibility to the bid narrative.".

Papa John's is up 22.8% since the beginning of the year, and at $53.15 per share, it is trading close to its 52-week high of $58.21 from November 2024. Investors who bought $1,000 worth of Papa John’s shares 5 years ago would now be looking at an investment worth $643.08.

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