Shares of Papa John’s (PZZA) are up nearly 20% on rumors that a private equity firm is planning to takeover the U.S. pizza chain.
The fund, Irth Capital Management, has reportedly been in discussions with advisors about a possible take-private offer for Papa John’s.
Irth Capital is run by Sheikh Mohamed al Thani, a member of Qatar’s royal family.
The fund currently holds a 4.99% stake in Papa Johns. This stake is just under the threshold that would require it to reveal its intentions for the company in a regulatory filing.
Interest from Irth Capital comes as Papa John’s struggles. The restaurant chain’s shares are down 25% over the last 12 months and have declined 27% through five years.
Analysts blame the steady decrease to the competitive restaurant landscape in which Papa John’s operates.
For now, the takeover reports are speculative as neither Irth Capital nor Papa John’s has said anything publicly about a potential deal.
However, an acquisition would be the latest example of a well-known U.S. restaurant chain being taken over by private equity.
Other American restaurant chains that have been bought by private equity in recent years include Jersey Mike’s Subs and Dunkin’ Donuts.
Papa John’s stock currently trades at $51.28 U.S. per share.
