Papa Murphy’s Holdings, Inc. | $FRSH Stock | Shares Fall On Poor Financial Results


Papa Murphy’s Holdings, Inc. (NASDAQ: FRSH)



Papa Murphy’s Holdings, Inc. (FRSH), a pizza franchise company yesterday reported preliminary full year and fourth quarter 2016 financial results. Papa Murphy’s projects fourth quarter total revenues to be $35.5 million and full year to be $126.9 million. Domestic same store sale have decreased 7.8% in the fourth quarter and 5.2% for the full year.  


Papa Murphy’s Holdings, Inc. CEO’s  Comments

Jean Birch, Chair of the Board and Interim Chief Executive Officer of Papa Murphy’s Holdings, Inc., stated, “While we are disappointed that our fourth quarter sales remained under pressure, we continue to execute against long-term strategic initiatives, such as the launch of our online ordering platform, the refranchising of company stores, and our first ever national ad campaign which debuts in the first quarter of 2017. While the environment remains competitive, we believe these initiatives, along with our return to traditional marketing messaging and a focus on new product innovation will drive positive results in the future.”  Globe Newswire  


FRSH Technical Analysis

Papa Murphy's Holdings

FRSH opened trading yesterday at $4.39 which was up from the previous day’s trading close of $4.36. FRSH closed trading yesterday at $4.25 and crashed down after market to $3.95, equivalent to a 7% decrease from the closing price. Taking a look at the daily chart we can see that the last time FRSH traded below these levels we have to go back to November 8th, 2016 when it traded at  $3.91.

Taking a closer look at the daily chart we can see that before the spike down FRSH had already been in an overall downward trend dating back to October 4th when it traded at $6.74. FRSH has a float of 10.37 million shares and traded below the normal daily trading volume on Monday.

For trading purposes, I would like to see FRSH open trading on Tuesday below $4.05 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Papa Murphy’s Holdings, Inc., incorporated on March 29, 2010, is a holding company. The Company, together with its subsidiaries, is a franchisor and operator of the Take ‘N’ Bake pizza chain in the United States. The Company franchises the right to operate Take ‘N’ Bake pizza franchises and operates Take ‘N’ Bake pizza stores owned by the Company. The Company operates through three segments: Domestic Company Stores, Domestic Franchise and International.

Its Domestic Franchise segment consists of its domestic franchised stores, which represent its system-wide stores and derives its revenues from franchise and development fees and the collection of franchise royalties from the Company’s franchise owners located in the United States. The Domestic Company Stores segment consists of its Company-owned stores in the United States and derives its revenues from retail sales of pizza and side items to the general public.

Its International segment consists of its stores outside of the United States, all of which are franchised and derives its revenues from franchise and development fees and the collection of franchise royalties from franchises located outside the United States.  The Company competes with Pizza Hut, Domino’s Pizza, Papa John’s and Little Caesars Pizza.  Reuters