Daily Traders Edge

Papa John’s will likely be sold in the next year, analyst says

October 10
10:03 2018

Embattled pizza chain Papa John’s International Inc. will probably be bought out in the next year, forecasts Kalinowski Equity Research President Mark Kalinowski.

The Wall Street Journal reported Monday that Trian Fund Management LP is assessing a possible takeover bid, sending shares surging in after-hours trading. Shares closed Tuesday up nearly 9%.

Last week, activist investor Legion Partners and the California State Teachers’ Retirement System built up a stake in Papa John’s.

In August there were reports that the company had hired advisers to evaluate the options, but there was no discussion at the time about strategic alternatives or a sale.

“Odds favor that the company is sold in the next 12 months or so,” Kalinowski told MarketWatch. “There’s a lot of incentive to make this happen.”

Papa John’s PZZA, is the third-largest pizza delivery chain in the world after Domino’s Pizza Inc. DPZ, and Pizza Hut, which is a Yum Brands Inc. YUM, chain.

“The pizza business is a global business,” said Kalinowski. “It’s bread, cheese, and whatever you want to put on the bread and cheese. It’s something that works for every culture on the globe. It’s not often that these sorts of opportunities come up. Opportunities come about because companies stumble badly. This is exactly what happened with Papa John’s.”

Continue Reading at Market Watch

Related Articles

Newsletter Signup

Sign up for our free newsletter