Papa John's Acquires Drake Food Service's Restaurants In UK For Undisclosed Sum

Papa John's International Inc PZZA has acquired the restaurants previously operated by the M25 division of Drake Food Service International (DFSI) in the U.K. Financial terms of the transaction were not disclosed.
The transition of restaurants will establish a portfolio of company-owned restaurants in the market.
Papa John's plans to make operating model enhancements to improve sales and restaurant-level profitability.
"The U.K. is important within our international footprint with the largest number of stores outside of North America, strong brand awareness with consumers and potential for long-term growth as we still have tremendous whitespace in the market," said Amanda Clark, Chief International and Development Officer for Papa Johns.
The new corporate-owned restaurant portfolio will consist of 91 locations across London and other parts of the U.K.
As part of the transition, about 1,000 employees working for DFSI M25 will become team members of the company.
DFSI will continue to hold its master franchise rights for Papa Johns in Spain, Portugal, Chile and Central America.
Papa John's held $46.7 million in cash and equivalents as of March 26, 2023.
Price Action: PZZA shares closed higher by 4.50% at $71.82 on Friday.