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