Apollo Global Management has withdrawn its $2.1bn offer to take US pizza chain Papa John’s private, underscoring the firm’s disciplined approach to valuations amid a more cautious consumer environment, according to sources cited by Reuters.

The offer, valued at $64 per share, was pulled about a week ago, according to people familiar with the matter. Apollo’s decision came as the restaurant sector faces weaker demand and tighter consumer spending, prompting investors to reassess pricing expectations.

Shares in Papa John’s fell over 20% following reports of the withdrawal, valuing the company at around $1.27bn. Analysts expect the chain’s quarterly earnings, due later this week, to show a 7% year-on-year drop in profits despite a modest increase in revenue.

Apollo, which had previously submitted a joint offer with Irth Capital Management before making a solo bid in October, remains focused on identifying resilient assets and long-term growth opportunities across its global portfolio.

While the deal did not move forward, private equity interest in the restaurant sector remains strong, with several firms exploring opportunities in fast-casual dining and consumer brands positioned for post-cycle recovery.

Apollo’s decision reflects a broader trend of valuation discipline across private equity, as firms balance capital deployment with a focus on quality assets and stable returns.

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