Papa Murphy’s Holdings Inc. posted a loss during the second quarter on charges associated with divesting interests in Project Pie and other one-time events, the company said Monday.
The Vancouver, Wash.-based parent of the Papa Murphy’s Take ’N’ Bake Pizza chain reported a net loss of $1.4 million, or a loss of 9 cents per share, for the June 29-ended quarter, compared with a loss of $1.6 million, or a loss of 19 cents per share, a year ago.
Excluding one-time charges, however, the company’s pro forma net income increased 45 percent, to $1.6 million, or 9 cents per share, compared with $1.1 million, or 7 cents per share, a year ago.
Revenue increased 33 percent, to $29.1 million, on domestic systemwide same-store sales that rose 4.5 percent, including a 4.9-percent increase at company-operated locations and a 4.5 percent increase at franchised units.
Ken Calwell, Papa Murphy’s Holdings president and CEO, said it was the 18th consecutive quarter of same-store sales increases.
The company will continue to focus on execution and improving operations, accelerating growth of online ordering and precision marketing, Calwell said.
“Along with the development, online ordering and precision marketing are the cornerstones of our growth strategy,” Calwell said in a statement. “We continue to make progress on the roll out of POS and online ordering capabilities, which are now in approximately 1,100 and 750 stores, respectively, as we lay the foundation for precision marketing.”
The company announced the selection of Deloitte Digital to take Papa Murphy’s e-commerce platform to the next level, he added.
“We see enormous value in this digital strategy, which should yield significant sales growth and margin expansion in the years ahead, as we continue to bring families together with America’s best tasting pizza,” Calwell said.
During the quarter, Papa Murphy’s added 20 new locations, including six company-owned units in the U.S. The chain ended the quarter with 1,485 locations, including 1,367 that are franchised.
For the full year, the company expects systemwide same-store sales to rise at least 3 percent, with systemwide sales of between $900 million and $920 million.
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