What's happened
MTY Group has announced the closure of 45 to 50 Papa Murphy’s locations over the next six to nine months, part of a broader move to prune underperforming units after reporting losses that exceed $10 million in the past year. The plan aims to reduce the corporate footprint and refocus on stronger-performing brands.
What's behind the headline?
what this means for the QSR sector
- MTY’s pruning of Papa Murphy’s signals a broader trend of consolidating underperforming assets in a diverse brand portfolio.
- The move could recalibrate investor confidence in MTY as it shifts resources toward higher-return brands such as Wetzel’s Pretzels and Cold Stone.
- Expect heightened scrutiny of franchise performance as more chains re-evaluate store ownership mix and loyalty initiatives.
who benefits
- Stronger-performing brands within MTY stand to gain market share and stronger unit economics.
- Franchisees in viable locations may see improved marketing support as the company reallocates resources.
risks and outlook
- Short-term store closures may disrupt service levels in affected markets but are unlikely to dent overall profitability if managed well.
- The timing aligns with broader industry moves to optimize portfolios amid competitive pressures and post-pandemic realignment.
How we got here
MTY Group took over Papa Murphy’s two years ago in a turnaround push. The closures come as MTY reports declines in network-wide same-store sales and a shrinking store count, with most losses previously tied to franchised locations. The company says the moves will allow it to concentrate on brands with higher returns and to improve overall profitability.
Our analysis
New York Post: The closures are part of MTY Group’s plan to reduce losses and focus on brands with stronger return potential. Independent coverage echoes similar themes about the scale of the shutdowns and their impact on MTY’s portfolio.
Go deeper
- Could MTY pivot into more franchised model retention to offset closures?
- What are the planned strategies for marketing and loyalty programs post-closures?
- How will customers in affected areas access MTY brands now?
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