Papa John’s sinks 10% on report Apollo withdrew its offer to take chain private

Shares of Papa John’s sank 10% on Tuesday following a report that Apollo Global has withdrawn its offer to take the pizza chain private.

Reuters reported that the private equity firm backtracked on its bid, valued at $64 a share, about a week ago. The firm previously submitted an offer for Papa John’s alongside Irth Capital Management, according to Reuters.

Apollo and Papa John’s did not immediately respond to requests for comment.

Papa John’s is preparing to release its third-quarter earnings report on Thursday. The company’s stock is down nearly 30% in the last year.

The report comes as restaurants and other consumer-focused companies have been reporting sluggish sales amid rising inflation and costs.

Last week, Chipotle executives said the fast food chain saw a 0.8% traffic decline, marking the third straight quarter of declines and a pullback in consumers across all income cohorts. Procter & Gamble reported in October that its lower-income customers are significantly paring back their spending.

The report follows another significant deal development in the restaurant space. Earlier on Tuesday, Yum Brands said it plans to review strategic options for Pizza Hut, following years of struggles for the pizza chain.