Papa Murphy's Announces Completion of Nine Unit Acquisition in Minneapolis
VANCOUVER, Wash. - Sept. 12, 2014 // GLOBE NEWSWIRE // - Papa Murphy's Holdings, Inc. (Nasdaq:FRSH) the world's leading take 'n' bake pizza franchise today announced the acquisition of nine Papa Murphy's stores in Minneapolis, MN for approximately $3.4 million. The Company completed the acquisition of the locations from a single franchisee in mid-August, bringing the company-owned store count to 24 units in the Minneapolis market. Overall, Papa Murphy's and its franchisees operate 78 stores in the Minneapolis market.
The transaction, which is not expected to impact reported earnings in the near-term, will contribute approximately $560,000 of EBITDA annually, and would be accretive to Papa Murphy's earnings per share by approximately $0.01 to $0.02 on an annual basis before considering the amortization of re-acquired franchise rights. The Company and its franchisees expect to open a total of five new stores in Minneapolis by the end of 2015.
"With the acquisition of these stores, we are further solidifying our commitment to and belief in the significant growth opportunity for the brand that exists in the Minneapolis market," said Ken Calwell, CEO of Papa Murphy's. "Minneapolis, our largest market for company-owned stores and our third largest market system-wide, continues to be an important and strong performing DMA for our brand. As we look to expand our presence in both existing and new markets, we will continue to explore strategic opportunities that are in alignment with our growth strategy."
"We are pleased by the Company's continued investment in building out the brand in Minneapolis," said Mike Cooper, who owns nine Papa Murphy's stores across three markets and is the President of the Minneapolis Co-op. "The Company's commitment to operating stores well and partnering with other owners in the market on growth initiatives has benefited the entire market."
About Papa Murphy's
Papa Murphy's Holdings, Inc. (Nasdaq:FRSH) is a franchisor and operator of the largest Take 'N' Bake pizza chain in the United States, selling uncooked pizzas that customers bake at home. The Company was founded in 1981 and currently operates over 1,400 franchised and corporate-owned fresh pizza stores in 38 States, Canada and United Arab Emirates. Papa Murphy's core purpose is to bring all families together through food people love with a goal to create fun, convenient and fulfilling family dinners. In addition to scratch-made pizzas, the Company offers a growing menu of grab 'n' go items, including salads, sides and desserts. For more information, visit www.papamurphys.com. Find Papa Murphy's on Facebook at www.facebook.com/papamurphyspizza.
This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to the Company's future earnings and growth potential, including potential new store openings. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "guidance," "anticipate," "estimate," "expect," "forecast," "project," "plan," "intend," "believe," "confident," "may," "should," "can have," "likely," "future" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.
Any such forward looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company's control) and assumptions. Although the Company believes any forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results and cause them to differ materially from those anticipated in any forward-looking statements. Please refer to the risk factors discussed in the Company's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 (which can be found at the SEC's website www.sec.gov) and each such risk factor is specifically incorporated into this press release. Should one or more of these risks or uncertainties materialize, the Company's actual results may vary in material respects from those projected in any forward-looking statements.
Any forward-looking statement made by the Company in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
SOURCE Papa Murphy's