Papa John’s International shares rose 4.9% in premarket trading after reports indicated that the pizza chain’s largest U.S. franchisee plans to support a bid to take the company private.
People familiar with the matter told Reuters that Nadeem Bajwa - who runs nearly 300 Papa John’s restaurants, equivalent to about 10% of the chain’s domestic locations - is preparing a "significant investment" to join Irth Capital’s purchase effort. Bajwa built the Bajco Group together with family members over more than two decades after beginning his career delivering pizzas for the chain while a college student.
The reported commitment from Bajwa would strengthen Irth’s standing behind its $47-per-share offer, which carries backing from Brookfield Asset Management. That offer represents a 44% premium to Thursday’s closing price of $32.72.
Irth previously submitted a joint bid with Apollo Global Management that fell apart in 2025. The firm is also supported by a member of the Qatari royal family and currently owns roughly 10% of Papa John’s stock, about half of that ownership held through derivatives, according to the report.
The chain’s shares have struggled this year, trading down nearly 15% year to date. Company performance has been pressured by a first-quarter earnings shortfall and weaker North American sales, factors cited as weighing on the stock. Papa John’s operates about 6,000 locations globally.
Key developments
- Nadeem Bajwa, operator of nearly 300 U.S. Papa John’s locations, plans a significant investment to back Irth Capital’s buyout effort.
- Irth’s existing $47-per-share proposal is backed by Brookfield Asset Management and equates to a 44% premium over the $32.72 closing price referenced.
- Irth currently holds about 10% of Papa John’s, roughly half via derivatives, and a prior joint bid with Apollo collapsed in 2025.
Market context
The reported backing from Bajwa appears to have provided immediate market reaction, with premarket trading reflecting investor interest in the strengthened buyout proposal. However, the company’s year-to-date performance remains negative amid recent operational and sales challenges.