Papa John’s International, Inc. (NASDAQ: PZZA) shares tumbled nearly 10% on Tuesday after reports that Apollo Global Management (NYSE: APO) has withdrawn its $2.1 billion bid to take the pizza chain private, ending weeks of speculation about a potential buyout.

According to Reuters, Apollo pulled its $64-per-share offer roughly a week ago amid concerns about deteriorating consumer demand in the fast-casual dining sector. The private equity firm had been exploring a joint bid with Irth Capital Management, but the proposal reportedly lost traction as macroeconomic headwinds weighed on restaurant valuations.Neither Apollo nor Papa John’s immediately responded to requests for comment.

The news comes just days before Papa John’s is set to report third-quarter earnings on Thursday, with Wall Street expecting results to reflect ongoing pressure from inflation and weaker consumer traffic. Analysts anticipate earnings per share to decline roughly 7% year-over-year, with same-store sales growth slowing amid increased competition and softer discretionary spending.

Papa John’s shares closed Tuesday at $43.47, down from last week’s high of $48.27. The stock has fallen nearly 30% over the past year, extending a broader slump across the restaurant sector as consumers pull back on dining out.

The withdrawal marks another blow for the restaurant industry’s M&A environment, following Yum Brands’ (NYSE: YUM) announcement earlier Tuesday that it will review strategic options for its Pizza Hut division. Analysts view the stalled deal as further evidence of tightening private equity appetite for consumer-focused businesses amid rising costs and slowing traffic.

About Papa John’s International, Inc.

Papa John’s International, Inc. (NASDAQ: PZZA), headquartered in Louisville, Kentucky, operates and franchises more than 6,000 restaurants in approximately 50 countries and territories. Founded in 1984, the company is one of the world’s largest pizza delivery brands, recognized for its “Better Ingredients. Better Pizza.” commitment. Papa John’s continues to invest in digital innovation and global expansion to adapt to evolving consumer dining trends.

About Apollo Global Management, Inc.

Apollo Global Management, Inc. (NYSE: APO) is a leading global alternative asset manager with approximately $785 billion in assets under management as of March 31, 2025. Founded in 1990 and headquartered in New York, Apollo invests across credit, private equity, and real assets, with a focus on delivering excess returns for institutional and individual investors. The firm operates offices in North America, Europe, and Asia, and manages capital on behalf of pension funds, endowments, and sovereign-wealth clients.

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.