“Another Chapter,” says Stephens Analyst as Papa John’s Stock (PZZA) Soars on Irth Capital’s Takeover Offer

Papa John’s PZZA +16.10% ▲ has received a $47 per share offer from Irth Capital Management, a Qatari‑backed investment fund seeking to take the pizza chain private. PZZA stock jumped 19% on Wednesday after the Wall Street Journal reported the proposal, briefly triggering a trading halt as investors reacted to the news. Stephens analyst Jim Salera called the offer “another chapter” in the company’s long‑running “acquisition saga.”

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The analyst noted that takeover speculation has helped support the stock over the past year. He reiterated a Buy rating on PZZA stock with a $47 price target.

The bid, which includes support from Brookfield Asset Management BAM -1.59% ▼ , values the company at roughly $1.5 billion, a 50% premium to where the stock traded before the offer was made.

Second Attempt at a Deal

This is not Irth’s first run at the company. The fund previously tried to acquire Papa John’s last year in partnership with Apollo Global Management APO -1.53% ▼ , but those talks collapsed without an agreement. Irth has since raised its effective stake to around 10%, positioning itself as a major shareholder ahead of this renewed bid.

Papa John’s is reportedly reviewing the offer, though there is no guarantee the company will accept the offer.

Pizza Chain Under Pressure

The takeover interest comes at a challenging moment for Papa John’s and the broader pizza category. Competition has intensified as consumers shift toward other cuisines, including Mexican food and coffee chains.

In February, Papa John’s announced a major restructuring plan that includes closing hundreds of U.S. stores, cutting menu items, and reducing corporate staff. Moreover, the company expects North American same‑store sales to decline this year.

The brand has also spent years recovering from reputational damage tied to controversial comments made by founder John Schnatter in 2017, which led to his departure as CEO and later as chairman.

Is PZZA a Good Stock to Buy?

Overall, Wall Street has a Moderate Buy consensus rating on Papa John’s stock based on three Buy and five Hold recommendations. The average PZZA stock price target of $42.57 indicates 10.86% upside potential.

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