Papa Murphy’s Holdings Inc. reported an 8.4-percent increase in same-store sales during its fourth quarter ended Dec. 29, the company said Tuesday.
Ken Calwell, Papa Murphy’s president and CEO, said the results marked the chain’s 16th consecutive quarter of same-store sales growth. The increase was driven by a “healthy balance of transaction growth, price and favorable product mix shift.”
“Our new product pipeline, along with our strategic initiatives, are powering continued improvement in operations and customer experience, and we’re seeing the results in our top-line and in enhanced store-level productivity,” Calwell said in a statement.
Net income moved to positive territory during the quarter, compared with the previous year, when costs associated with its initial public offering in early 2013 dampened results.
Last year, the company acquired six franchised units in Seattle for about $4 million, bringing the number of corporate units in that market to 12, the company said.
Since the beginning of the fourth quarter, the company has bought back 30 franchised units, in Portland, Ore.; Boise, Idaho; Knoxville, Tenn.; Jacksonville, Fla.; and Dallas. The company operates 108 locations in 11 markets.
Calwell said such strategic franchise acquisitions will help spur growth in frontier markets.
“Through this investment, combined with future company-owned and ongoing franchise store development, we believe we can continue to drive increased awareness of the Papa Murphy’s brand and, in turn, further improvements in sales and profitability,” he said.
Papa Murphy’s expects to add 110 to 115 new domestic locations in 2015, including 10 to 15 new company-owned units.
Domestic systemwide same-store sales are expected to be about 3 percent, with total systemwide sales ranging between $900 million and $920 million.
The chain ended the year with more than 1,400 franchised and company-owned locations in 38 states, Canada and the United Arab Emirates.
4Q NET INCOME
Result: $2.8 million, or 17 cents per share(from -$2.9 million, or -$1.15 per share)
4Q REVENUE
Result: $28.3 million% Increase: 24.8% (from $22.7 million)
4Q SAME-STORE SALES
% Increase systemwide: 0.4%
% Increase corporate: 10.5%
% Increase franchised: 8.2%
Source: Company report
FULL YEAR NET INCOME
Result: $1.2 million, or 7 cents share(from -$2.6 million, or -$2.34 per share)
FULL YEAR REVENUE
Result: $97.4 million% Increase: 21% (from $80.5 million)
FULL YEAR SAME-STORE SALES
% Increase systemwide: 4.5%
% Increase corporate: 8.1%
% Increase franchised: 4.3%
Source: Company report
RELATED:
• Papa Murphy's 3Q same-store sales climb 4.6%
• Papa Murphy's widens loss in 2Q
• More restaurant finance news
Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout
