Papa Murphy's Outperforms in 2008, Topping 2007 Sales

Consumer-Voted "Best Pizza Chain in America" Opens over 100 Locations amidst Tough Economic Climate; Signs 10 Area Development Agreements for Aggressive Growth over Next Five Years

Vancouver, Wash.--(BUSINESS WIRE)--Continuing its pattern of solid performance in an extremely competitive category, Papa Murphy's International today announced that it closed 2008 with $585 million in total U.S. systemwide sales, a nearly 17 percent increase from 2007. Now the fifth-largest pizza company in the U.S.1, Papa Murphy's ended the year with 1,135 locations, opening 102 in 2008. The company continues to be widely acknowledged for its excellence in value, quality, variety, service and convenience. In fact, Papa Murphy's was voted "Best Pizza Chain in America" for the sixth consecutive year by consumers nationwide in the Restaurants and Institutions "Consumers' Choice in Chains" survey.

Last year Papa Murphy's took giant leaps towards meeting its long-term growth goals. The company signed 10 new area development agreements, which will yield over 100 new stores over the next five years. Thirty-nine take 'n' bake stores are slated for three states new to the chain - Tennessee, Alabama and North Carolina.

In addition to its "Consumer's Choice in Chains" Platinum Award, Papa Murphy's found success by the following measures in 2008:

  • Receiving Pizza Today magazine's "Chain of the Year" accolade for the third time. Papa Murphy's also won the title in 2001 and 2006 and is the publication's only three-time winner.
  • Expanding its reduced-fat, reduced-calorie line of pizzas with the launch of the Chicken Bacon Artichoke Thin Crust deLITE®.
  • Securing a spot on Inc. 5,000 list of the fastest-growing private companies in the country. Papa Murphy's also took a place on the magazine's list of the Top 100 Food & Beverage Companies.
  • Launching "Feed Your Neighbor," a system-wide fundraising effort to benefit Feeding America (formerly named America's Second Harvest).
  • Adding 40 new franchise entity groups throughout the country. Papa Murphy's ended the year with 455 franchise owners in 31 states and two Canadian provinces.

"We are truly thankful to our franchise owners, vendor partners and customers for their devotion to this incredible brand during a year in which so many competitors across the country saw sales declines, restaurant closures, even bankruptcies," said Clarice Turner, president and COO at Papa Murphy's. "Our brand has found its sweet spot in this economy. Papa Murphy's is a high-value, quality-oriented solution for families who are re-evaluating their out-of-home dining purchases."

About Papa Murphy's

Papa Murphy's is the fifth-largest pizza chain in the country and the pioneer of the take 'n' bake pizza concept. Papa Murphy's operates over 1,100 locations in 31 states and Canada. The Vancouver, Wash.-based company offers custom-made pizzas featuring high-quality fresh toppings generously layered on pizza dough that is made fresh each morning in each store. Containing zero grams of trans fat per serving, Papa Murphy's pizzas are baked at home in customers' ovens for a piping hot, delicious meal whenever they want it. In addition to handmade pizzas, the company offers a growing menu of take 'n' bake items, including Cheesy Bread, Cinnamon Wheels, chocolate chip cookie dough and freshly-made salads. Papa Murphy's has been voted "Best Pizza Chain in America" for six consecutive years by consumers nationwide in the Restaurants and Institutions "Consumers' Choice in Chains" survey.

1Based on U.S. store count

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