Upcoming AWS Coverage on Panera Bread Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 24, 2017 / Active Wall St. blog coverage looks at the headline from Papa Murphy's Holdings, Inc. (NASDAQ: FRSH) as the Company announced on February 22, 2017, that Barren Troy Holdings, an experienced, multi-unit operator, has agreed to acquire six Company-owned stores in the Denver, Colorado market which includes three developed under the Company's Pre-Sale Development Program, and has offered to build three more stores over the next three years. Register with us now for your free membership and blog access at:

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One of Papa Murphy's Holdings' competitors within the Specialty Eateries space, Panera Bread Co. (NASDAQ: PNRA), reported on February 07, 2017, its financial results for Q4 FY16 and full year FY16. AWS will be initiating a research report on Panera Bread in the coming days.

Today, AWS is promoting its blog coverage on FRSH; touching on PNRA. Get all of our free blog coverage and more by clicking on the link below:

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The Agreement

Papa Murphy's has announced this agreement as a step towards franchisee's growth and profitability through multiple key initiatives. The Company plans to bank on underpenetrated markets by investing capital to accelerate unit growth. Papa Murphy's Q3 FY16 results reported a 5.8% decline in the domestic system comparable store sales, which included a 5.6% decrease at domestic franchisee-owned stores and a 7.7% decrease at company-owned stores. Hence, this agreement is viewed as a growth strategy to increase the net cash flow from the planned franchising of 6 stores. Executed as for the next step of the strategic plan to partner with well-capitalized operators, the Company plans to acquire stores and continue building units to achieve full market penetration.

A Step against Bearish Quarter

Papa Murphy's announced its Q3 FY16 results on November 02, 2016, for the three-month period ending September 26, 2016. The Company reported a net loss of $421,000 against the net income of $1.2 million for the same period. This re-focused growth strategy in the Denver market is expected to generate greater cash flow driving on the extensive experience of Barron Troy in the franchise business. Jean Birch, Board Chair, and interim CEO of Papa Murphy's stated that this franchising strategy, subject to being executed will focus on asset-light franchise business model and manage excess costs while creating sustainable long-term value for franchise owners as well as shareholders.

Realignment of Resources to Drive Profitability

The Company, under its plans to minimize overall selling, general, and administrative expenses (SG&A), announced on February 15, 2017, a strategic realignment of resources in an attempt to support franchise owners and field staff. The realignment includes the elimination of certain management positions and other corporate personnel and is expected to generate annual SG&A savings of about $1.5 million. This agreement with Barron Troy is the next step in the Company's strategy to drive franchisee's growth and profitability through partnerships with well-capitalized franchisees that can buy Company-owned stores and build out select markets.

Papa Murphy's Growth Prospects

Papa Murphy's recently announced on January 17, 2017, that it has expanded the scope of its relationship with Franchise Performance Group to include the franchising of Company-owned stores in select markets. The Company plans to elevate sales and profits through the definitive strategy to achieve market scale and efficiency by investing in new stores and consolidating stores from existing owners. Refranchising these locations would help generate greater cash flow and hence, contribute towards reducing leverage.

Papa Murphy's additionally announced a nation-wide television campaign on January 19, 2017, under renewed focus on product innovation and tight control on SG&A management under its strategy to return the Company to profitable growth after a comparably bearish quarter.

Stock Performance

At the close of trading session on Thursday, February 23, 2017, Papa Murphy's stock price jumped 5.53% to end the day at $4.39. A total volume of 175.56 thousand shares were exchanged during the session, which was above the 3-month average volume of 116.05 thousand shares. The stock currently has a market cap of $74.28 million. Additionally, the Company's shares are trading at a PE ratio of 19.34.

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SOURCE: Active Wall Street