NEW YORK (Reuters) -Papa John's CEO Todd Penegor on Thursday said the U.S. pizza chain is focusing on executing its strategy to drive value, but noted it would consider alternatives if they were available.
Penegor, speaking in an earnings call after Papa John's missed its third-quarter earnings estimates, promised a host of improvements, including cost cuts and new side dishes and then addressed what he called "M&A rumors" after Reuters reported this week that a bid to take the company private had been withdrawn.
He acknowledged that softer consumer spending is weighing on quick-serve restaurants, but that the company is "positioning Papa John's to compete better in 2026." He said it is working on transforming the brand and fueling sustainable, profitable sales growth in the future.
The company cut its 2025 sales outlook because it now expects North American sales to be down 2% to 2.5% for the year, after an earlier forecast of being flat to up 2%.
Private equity firm Apollo Global withdrew its offer to take Papa John's private at $64 a share on concerns about consumer sentiment and the pizza chain's ability to navigate the weaker outlook, sources familiar with the matter told Reuters. The deal would have valued the company at $2.1 billion.
Investors had hoped Penegor would address speculation about a possible deal. He said if there were an alternative to the company's strategy, management and the board would "fully consider it."
Papa John's shares were down more than 5% in pre-market trading after 5% and 10% drops on Wednesday and Tuesday, respectively. The company's stock has dropped nearly 20% in the last five days and is down 28% in the last 12 months.
(Reporting by Svea Herbst-Bayliss and Abigail Summerville; Editing by Paul Simao)
