When it comes to the pizza wars, skirmishes are ongoing, and the battle for dominance and control leads to constantly shifting positions. To the victors go the spoils, and it looks like Domino’s, Pizza Hut, and Little Caesars have some market share to gain: Papa John’s is wounded.

According to recent reports, its sales have plummeted, down 6 percent in North America and 3 percent worldwide. Earnings per share also decreased by 19 percent. The company’s leadership has moved to make changes designed to streamline operations—seemingly in contrast with the chain’s long-standing emphasis on quality rather than low costs—but experts worry that the move is not enough to keep the company competitive.

Meanwhile, private equity funds are circling. Headlines indicate that Irth Capital Management, a private investment fund backed by Qatar’s royal family, is in talks to acquire Papa John’s. It previously disclosed a 4.99 percent stake in Papa John’s, and the company is known for its aggressive corporate takeovers. For example, it previously assumed management of the restaurant chain Bojangles, as well as the mattress start-up Casper.

Following news of the potential acquisition, Papa John’s stock prices actually rose 18.4 percent, indicating investors’ prediction that the change could lead to productive, meaningful changes. In particular, they appear to anticipate that Irth will work to expand Papa John’s global presence, which could help it catch up with Domino’s and Pizza Hut, both of which already have achieved strong global footprints.

Still, the pizza wars are intense. Any sign of weakness can be a signal for competitors to pounce. Are Domino’s, Pizza Hut, and Little Caesars likely to let the opportunity to increase their position pass by without a strategic attack?

Discussion Questions 

1. What improvements might Irth Capital Management make, should it acquire Papa John’s?
2. How should competitors in the pizza market respond to Papa John’s struggles? What would be the most appropriate strategy?

Sources: Evie Liu, “Papa John’s Stock Soars on Report of Potential Takeover,” Barron’s, February 13, 2025; Fernanda Tronco, “Popular Pizza Chain Might Soon Be Taken Over Amid Troubles,” Yahoo! Finance, February 14, 2025