Investing.com -- Papa John's International shares jumped approximately 5.7% on Wednesday following a Reuters report indicating the pizza chain is in advanced discussions for a potential buyout that would take the company private.

According to the report, Papa John's is actively negotiating a deal that would remove the company from public markets. The discussions come as the pizza industry faces challenges including increased competition, rising commodity costs, and declining consumer demand.

The company's stock has fallen 28% over the past six months, closing at around $34.99 per share on Tuesday. In March, Qatari-backed investment fund Irth Capital, supported by Brookfield Asset Management, offered $47 per share for Papa John's, the report said.

Irth Capital has been conducting due diligence on the potential acquisition over the past month. Some investors believe a deal could be reached before Papa John's reports quarterly earnings on May 7, though sources cautioned that negotiations are ongoing and an agreement is not guaranteed.