Papa John's has officially abandoned the sale of the company, completing an 18-month strategic review. The management stated that the internal transformation would open up a better way forward for shareholders than going private. The news caused a sharp market reaction: the shares of the pizzeria chain collapsed by more than 15% amid investor disappointment. The main bidder for the buyout was the Qatari company Irth Capital Management, which owns about 10% of the shares. Previously, she offered $47 per paper, which gave a premium of 44%, and collaborated with a large American franchisee to prepare a new offer.

The financial results for the second quarter of 2026 increased the pressure on the company. Total revenue decreased by 8.8% year-on-year to $482.4 million. Comparable sales in North America fell by 8.3%. Adjusted EBITDA remained at $52.7 million, while diluted earnings per share decreased to 24 cents. In order to maintain financial flexibility and redirect capital to the recovery program, the Board of Directors voted to suspend the payment of quarterly dividends starting in the third quarter.

CEO Todd Penegor acknowledged that the recovery process is taking longer than expected, but noted positive developments. Among them are the growth of the Papa Rewards loyalty program, the optimization of supply chains and the introduction of artificial intelligence to improve the order processing process. The only bright spot was international sales, which increased by 1.5%, showing a positive trend for the seventh consecutive quarter. Nevertheless, the forecast for EBITDA for 2026 of 180-190 million dollars was below the consensus of analysts.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.