The pizza dining industry is facing a flurry of mergers and acquisitions that could lead to multiple sales transactions in the upcoming months.
Papa John’s International’s largest U.S. franchisee Nadeem Bajwa and investment firm Irth Capital are negotiating with the pizza chain to buy out the company and take it private, sources have told Reuters.
Nadeem Bajwa operates about 300 Papa John’s locations. Irth and Papa John’s declined to comment and Nadeem Bajwa was not immediately available for comment, Reuters said.
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Pizza Hut said to consider sale
And now, Yum Brands is conducting exclusive discussions seeking to sell its Pizza Hut business to private equity firm LongRange Capital, a source familiar with the talks told Reuters.
LongRange and Yum are discussing a potential deal that could be announced in several weeks, though there is no guarantee that an agreement will be reached, the source said.
LongRange declined to comment, while Yum was not immediately available for comment, Reuters said on May 29.
Negotiations on a sale proceed, while industry headwinds have impacted the fast-food industry, as rising prices driven by inflation have reduced consumer demand and discouraged diners from eating out.
Pizza chains have blamed fierce competition, rising labor and food costs, and high lease rates for their economic troubles that have led to store closings, restructurings, and bankruptcy filings.
A survey by Popmenu revealed that 68% of U.S. consumers say they are reducing their restaurant dining and prioritizing affordability and convenience, The Street’s Nina Zdinzak reported. Consumers in February 2026 said that they had reduced their restaurant spending to about $90 a week from $115 a week in June 2025.
Pizza Hut closing 250 locations
Pizza Hut‘s parent Yum Brands in February 2026 said it would shutter 250 underperforming locations as part of its Hut Forward plan in the first half of 2026.
Papa John’s unveiled in its fourth-quarter earnings call that it will close 300 underperforming restaurants, including 200 by the end of 2026. The company did not reveal a deadline for closing the remaining 100.
Papa John’s also said it would cut 7% of its workforce.
Domino’s closed 100s of locations
Domino’s Pizza Enterprises, the largest franchisee of the giant pizza chain, in 2025 said it would close 205 low-performing locations. Also, the global pizza chain’s Oceanside, Calif.-based franchisee North County Pizza Inc. filed for Chapter 11 bankruptcy on March 11, 2025, to reorganize its business.
In addition to major pizza chains closing 100s of restaurant locations, many smaller local and regional chains face economic distress, forcing them to file for bankruptcy protection.
Small chains filed for bankruptcy
Wood-fired pizza dining chain Smoking Monkey Pizza, which operated three restaurants in Renton, Seattle, and Spokane, Wash., filed for Chapter 11 bankruptcy on May 12 to reorganize its business, according to Bankruptcy Observer.
The chain closed its Spokane location in March, two months before filing for bankruptcy.
Another wood-fired pizza restaurant chain, Fiorella, with four locations in San Francisco, filed for Chapter 11 bankruptcy for the fourth time on March 6, 2026, to reorganize and continue operating its Noe Valley location at 4042 24th Street, according to PacerMonitor.
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