The Company announced plans to accelerate its convenience strategy through a partnership with Olo, the leading provider of online and mobile ordering capabilities. Papa Murphy's move to Olo's digital platform will enable online and mobile ordering to be fully integrated with third-party marketplace and delivery services, where available, providing a seamless convenient experience for both customers and franchise-owners.
"We continue to believe convenience is a big opportunity for us, and we are confident that Olo is the right partner as we upgrade our digital platform," said
The new platform, which the Company expects to be operational in the first quarter of 2018, is expected to improve the online and mobile ordering experience, making it easier for Papa Murphy's customers to find their local store, customize their order, and pay for their meal. Through Olo's Dispatch delivery network, which leverages delivery service
providers such as
"We're proud to partner with such a unique and innovative brand as Papa Murphy's to help elevate the Company's digital experience," said
The Company estimates the cost efficiencies from a move to Olo's digital platform will benefit go-forward annual EBITDA by approximately
Planned Closure of Company-Owned Stores
The Company also announced plans to close up to sixteen company-owned stores across several markets by the end of the year. The closures are a result of an ongoing strategic review of the Company store portfolio as the Company prepares markets to be refranchised.
"As we work to prepare for the refranchising of a majority of our Company-owned stores, we have assessed the on-going viability of certain locations and are taking action to optimize the near-term value of the portfolio to benefit both the Company and the franchise-owners acquiring the markets," said Birch. "We have a clear opportunity to reduce short-term losses while giving new owners a more profitable portfolio of stores from the start."
The Company estimates that the closures will benefit annual EBITDA by approximately
About Papa Murphy's
Olo helps restaurant brands maximize revenue per square foot by delivering faster, more accurate, and more personal service to their customers. Through beautiful, fully-branded digital interfaces, Olo's enterprise-grade ordering platform integrates with the brands' existing systems, opening new digital revenue streams injected seamlessly into the restaurant's operations. Olo is a pioneer in the industry, beginning with text message ordering on mobile feature phones in 2005. Today, over 50 million consumers use the Olo platform to Skip the Line® or get food delivered from the restaurants they love. Clients include Applebee's (DIN), Chili's (EAT), Chipotle (CMG), Denny's (DENN), Five Guys Burgers & Fries, Jamba Juice (JMBA), Noodles & Company (NDLS), Red Robin (RRGB), Shake Shack (SHAK), sweetgreen, Wingstop (WING), and more. Learn more at www.olo.com and or visit our Dispatch page at www.olo.com/dispatch.
This press 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 projected one-time charges, projected impairment charges, projected EBITDA, projected diluted earnings per share, expectations regarding the Olo platform and the benefits from a relationship with Olo, future financial or operational results, future franchise owner profitability, and business strategy.
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 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.
Non-GAAP Financial Measures
The Company is providing with this press release forward-looking estimates of the non-GAAP financial measure of EBITDA. EBITDA is not derived in accordance with GAAP and should not be considered by the reader as an alternative to net income (loss) (the most comparable GAAP financial measure to EBITDA). The Company's management believes that EBITDA is helpful as an indicator of the current financial performance of the Company because EBITDA reflects the additions and eliminations of various income statement items that management does not consider indicative of ongoing operating results. We have not provided a reconciliation of forward-looking EBITDA to GAAP net income (loss) because of the inherent difficulty in forecasting and quantifying various adjustments that are necessary for these reconciliations and, accordingly, the reconciling information cannot be obtained without unreasonable effort.
Alexis Tessier, ICR email@example.com 877-747-7272 Media Contact: Christine Beggan, ICR Christine.Beggan@icrinc.com 203-682-8329
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