A report notes that Yum Brands set another deadline this week for submission of formal offers by the bidders
Amid stiff competition, high commodity costs and waning consumer demand, American pizza chains Pizza Hut and Papa John’s have made progress that will mark an ownership change for the brands, Reuters reported.
The report added that the companies are negotiating separate deals that is aimed at giving their management teams time to readjust their strategies and business plans going ahead, as an ownership change could remove them from the spotlight of stock exchanges and public earnings update reports.
As Papa John’s is scheduled to release its quarterly earnings on 7 May 2026, the report noted that Qatari-backed investment fund Irth Capital is expected to reach a deal by then. In March, the company was offered USD 47 a share from Irth, with backing from Brookfield Asset Management. However, the negotiations are still ongoing and no deal is guaranteed, Reuters added.
The report pointed out that Pizza Hut owner Yum Brands set another deadline this week for submission of formal offers by the bidders. As private equity firms Sycamore Partners, Apollo Global Management and LongRange Capital and others are looking at the deal positively, Yum may choose to engage in exclusive talks with someone after this week’s deadline, the report noted.
The interest in buying pizza chains comes as large corporate deals rebounded in the opening quarter and as chains, restaurants are facing pressure, stemming from more cost-conscious and calorie-counting consumers to high ingredient prices, as per the report. Earlier, many restaurant chains exited the public market as Denny’s sold to an investor group for USD 620 million and Potbelly sold to private convenience store chain RaceTrac, the report mentioned. (With Reuters Inputs).
