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Papa Murphy's Holdings, Inc. (stock ticker: FRSH) is a leading fast-casual pizza chain in the United States. The company allows customers to customize their pizzas and other menu items, and then cook them at home.
In terms of financials, Papa Murphy's reported net sales of $815.3 million in fiscal 2020, a decrease of 11.5% from the previous year. The company's net income for fiscal 2020 was $8.2 million, or $0.25 per diluted share, compared to net income of $10.5 million, or $0.31 per diluted share, in fiscal 2019.
Despite the decline in sales and earnings in fiscal 2020, Papa Murphy's has a strong track record of growth. Over the past five years, the company has increased its revenue at a compound annual growth rate (CAGR) of 3.4%. Additionally, Papa Murphy's has consistently generated positive operating cash flow, with an average operating cash flow margin of 6.6% over the past five years.
One area where Papa Murphy's has struggled is in its earnings per share (EPS) growth. Over the past five years, the company's EPS has declined at a CAGR of 20.2%. This has been due in part to the company's significant share buyback program, which has reduced the number of outstanding shares and increased EPS volatility.
Looking forward, Papa Murphy's is well-positioned for growth in the fast-casual pizza market. The company has a loyal customer base, a differentiated product offering, and a strong brand. Additionally, Papa Murphy's has been focused on improving its digital capabilities, including its online ordering and delivery platforms.
Overall, while Papa Murphy's has faced some challenges in recent years, the company has a solid financial foundation and a positive outlook for the future. Investors looking for exposure to the fast-casual pizza market may want to consider adding FRSH to their portfolio.