Papa Johns Sees Stock Soar After Takeover Rumors Concerning Irth Capital Management Spread

Despite having seen its stock value plummet over the past year, as Restaurant Business reported, Papa Johns recently experienced a turnaround in its market fortunes after rumors of a potential takeover made headlines.

A Feb. 13 report from Semafor indicated that an investment fund backed by a member of Qatar’s royal family was interested in a potential takeover of America’s fourth-largest pizza chain. Irth Capital Management, founded by Matthew Bradshaw and Sheikh Mohamed “Moe” al Thani, was said to be the party looking at the potential takeover of Papa Johns, which has a $1.6 billion market cap. Bradshaw himself previously founded Durational Capital prior to helping cofound Irth, and Durational was responsible for taking both Bojangles (a fried chicken chain) as well as Casper (a mattress company) private in previous years.

While Semafor suggested that Irth manages around $200 million — and therefore, it’s unclear how plans to finance a takeover bid might work — the publication also underscored the fact that al Thani had spent three years at the Qatari sovereign wealth fund and may have massive capital at his discretion.

In 2024, Irth acquired a 4.99% position in Papa Johns, a figure that fell just below the threshold triggering a disclosure of its intentions.

Papa Johns’ Stock Climbs High After Potential Takeover News

Following the release of the Semafor report, Papa Johns’ shares ticked upward by a significant degree. Shares rose by 18% on Feb. 14 and were up 34% as of 11:31 a.m. ET on Feb. 18 concerning a five-day window. As QSR noted, Papa Johns’ share price had endured significant struggles over the past year, having stood at $73.03 on Feb. 16, 2024.

Restaurant Business cited Stephens analyst Jim Salera, who indicated in a Feb. 13 note that rumors of the takeover “could have been the primary driver” behind the stock price surge, but also that the company had fared well during January. Further, the analyst underscored the fact that Irth does have at least some experience in the restaurant and retail segments.

Papa Johns is working to turn around its performance after a prolonged slump by revamping its loyalty program to encourage repeat customers. Additionally, the company is shifting its advertising strategy, placing greater emphasis on local marketing instead of its previous nationwide approach.

It’s also not the first time that Papa Johns has been eyed for takeover. In 2018, Nelson Peltz’s Trian Partners considered making a move on the pizza chain, and in 2019, activist investor Starboard Value made a $200 investment in Papa Johns. The pizza chain later repurchased Starboard’s shares in March 2023, per QSR.