Private equity eyes major US pizza chains deal
Two of the most recognizable names in the U.S. pizza industry — Papa John’s International and Pizza Hut, owned by Yum Brands — are moving closer to potential sales as the companies grapple with slowing consumer demand, rising food costs, and intensifying competition, according to people familiar with the discussions.
Sources say both chains are in separate negotiations that could ultimately take them private, allowing management teams to restructure operations away from the scrutiny of quarterly earnings reports and public market pressures.
Papa John’s explores buyout offer
Papa John’s shares have fallen roughly 28% over the past six months, trading near $34.99 as of Tuesday. In March, the company received a reported $47-per-share offer from Irth Capital, a Qatar-backed investment fund, supported by Brookfield Asset Management, according to two people briefed on the discussions.
Irth has spent the past month conducting due diligence and holding talks with the company about a possible acquisition. Some investors are cautiously optimistic that negotiations could result in a deal around the time Papa John’s reports quarterly earnings on May 7, although sources stress that an agreement is not guaranteed.
Papa John’s has struggled to regain momentum in recent years, facing declining same-store sales and leadership turnover since founder John Schnatter left the company in 2018. Shares peaked near $130 in late 2021 but have since trended downward amid operational challenges.
Yum Brands seeks bids for Pizza Hut
Meanwhile, Yum Brands has set a new deadline for potential buyers to submit formal offers for Pizza Hut, according to three people familiar with the process. Private equity firms Sycamore Partners, Apollo Global Management, and LongRange Capital are among those reportedly considering bids.
Following the deadline, Yum could choose a buyer to enter exclusive negotiations, though it may also opt to retain or spin off the chain if offers fall short of expectations.
Pizza Hut has weighed on Yum’s recent earnings performance, even as the company’s other brands — Taco Bell and KFC — continue to post stronger results. Industry observers say a new owner may need to invest heavily in modernizing older restaurant locations and refining the brand’s strategy.
Industry headwinds push restaurant deals
Interest in acquiring the chains reflects a broader rebound in corporate dealmaking and ongoing pressures facing restaurant operators. Companies are contending with higher labor and ingredient costs, as well as consumers who are increasingly price-sensitive and health-conscious.
Several restaurant brands have recently exited public markets. In 2025, Denny’s agreed to a $620 million sale to an investor group, while sandwich chain Potbelly was acquired by convenience store operator RaceTrac for $566 million. Canada-based MTY Food Group, owner of Papa Murphy’s, has also explored strategic options, according to reports.
“Public quick-service restaurant stocks are under pressure as softer consumer demand collides with structural cost challenges,” said Will Auchincloss, Americas retail sector leader at EY-Parthenon. “Traffic has weakened as consumers cut back spending, while companies face higher labor costs and intense price competition.”
Both Papa John’s and Pizza Hut have acknowledged plans to close hundreds of underperforming locations as part of efforts to improve profitability.
Taking the brands private could give new owners more flexibility to restructure operations and invest in long-term improvements without the immediate pressure of meeting quarterly earnings expectations.
Company representatives for Yum Brands, Papa John’s, Irth Capital, Apollo Global Management, and Sycamore Partners declined to comment on the discussions. LongRange Capital did not immediately respond to requests for comment.
