The realignment, which includes the elimination of certain management positions and other corporate personnel, is expected to generate annual SG&A savings of approximately
"While it's always a difficult decision to affect people, this realignment is necessary to ensure the business is as efficient as possible while we remain laser-focused on the support of our franchise owners and field staff as we all execute on our key strategies," said Papa Murphy's interim Chief Executive Officer,
The Company is focused on driving franchisee growth and profitability through several key initiatives including the refranchising of Company-owned stores. In this next phase of its strategic development plan, the Company is seeking to partner with high-quality well-capitalized franchisees who can buy Company-owned stores and further build out select markets. Additionally, in January, Papa Murphy's launched its first-ever national advertising campaign which consists of at least six weeks of mostly incremental national television advertising in the first half of the year. Lastly, the Company continues to focus on driving sales growth through product innovation and the addition of more customer convenience through its recently launched e-commerce platform and the delivery test. These measures, along with the above mentioned cost savings, are expected to drive ongoing top and bottom line growth.
Birch continued, "As we re-size SG&A expenses, focus on our asset-light franchise business model, and continue to execute against our strategic plan, we see significant long term opportunity for profitable growth at Papa Murphy's. We are confident that we now have the right structure, team and strategies in place to enable us to drive our brand forward and create long term value for all shareholders."
This news release, as well as other information provided from time to time by
Forward-looking statements in this press release
include statements relating to the Company's expectations for future financial or operational results, including future reductions in SG&A expenses and severance costs as a result of the realignment, potential growth arising from the Company's strategic initiatives, and the Company's marketing strategy. 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 annual report on Form 10-K for the fiscal year ended
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.
ABOUT PAPA MURPHY'S
Christine Beggan, ICR firstname.lastname@example.org 203-682-8329 Investor Contact: Alexis Tessier, ICR email@example.com 877-747-7272
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