Papa Murphy's Partners With Olo For Mobile Ordering, Will Close Up To 16 Stores

By Tonya Garcia Markets MarketWatch Pulse

Papa Murphy's Holdings Inc. said Monday that it has partnered with Olo, a digital ordering provider, to create a platform for online and mobile ordering. The service will be operational in the first quarter of 2018, and integrated with third-party marketplaces and delivery services, where available. Papa Murphy estimates an earnings per share benefit of 4 cents, and will take a one-time charge of about $5.1 million related to the impairment of its current online ordering system. Papa Murphy also announced that it will close up to 16 company-owned stores in several markets by year-end. Most closures will take place in the second quarter. The company is preparing some markets to be refranchised. Papa Murphy expects a one-time charge of up to $2.3 million and an annual EPS benefit of about 5 cents. Papa Murphy shares are unchanged in premarket trading, and up 15% for the past three months. The S&P 500 index is up 2.4% for the last three months.

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