Papa Johns Stock Soars on Takeover Talk

Shutterstock photo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Papa Johns stock got a boost on Tuesday following rumors about a potential takeover of the company.

Papa Johns Stock Soars on Takeover Talk Source: Shutterstock

According to these rumors, Trian Fund Management may have an interest in taking Papa Johns (NASDAQ: PZZA ). This includes talk that it got in contact with the company to gain more information about the likelihood of a possible deal.

It's possible that going private could be good news for Papa Johns stock. It would put an end to the public feud between the company and its founder, John Schnatter. However, the company would likely need Schnatter's help to go private as he owns 30% of Papa Johns stock .

With all that in mind, taking the company private may line up with Schnatter's own plans. He was reportedly in talks with Wendy's (NASDAQ: WEN ) about selling the company. Trian is an investor in Wendy's with a 13% stake in the fast food chain, reports CNN Business .

It's still unknown how exactly a deal with Trian would go for holders of Papa Johns stock. That includes any guesses at share price offers. It's also unknown if Trian would be the actual owner of the company, or if Wendy's would take it over.

There's also the possibility that Trian won't be buying up Papa Johns. This could be due to the asking price being too high or a deal just not working out. There's also talk that several other companies also have an interest in acquiring the pizza chain, Fox Business Network notes.

PZZA stock was up 7% as of Tuesday morning, but is down 11% year-to-date.

More From InvestorPlace

As of this writing, William White did not hold a position in any of the aforementioned securities.

Compare Brokers

The post Papa Johns Stock Soars on Takeover Talk appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: PZZA , WEN

More from InvestorPlace Media


InvestorPlace Media

InvestorPlace Media

Investing, Financial News

Research Brokers before you trade

Want to trade FX?