Papa Murphy’s posts $6.2 million loss for Q2

Papa Murphy’s revealed financial losses for its second-quarter report, released Wednesday.

The Vancouver-based pizza chain posted a net loss of $6.2 million, a drop of $0.37 per diluted share. The drop coincided with fewer sales, which declined 4.3 percent when compared with last year’s second quarter.

Chairwoman Jean Birch was optimistic in a prepared statement. She said the company has focused on starting new initiatives for future growth, including new delivery options and an e-commerce platform.

“We believe that through successful execution against these strategies, along with the leadership of Weldon Spangler, our new CEO, we can return this business to sustained growth and profitability.”

Papa Murphy’s launched its own delivery service in select areas, still in the pilot stages. It also formed a partnership with Amazon to tap into its well of gig drivers to deliver pizzas in Portland and Seattle.

The company also formed a partnership with Olo in June to help build an online ordering platform.

Papa Murphy’s has made strides in its other strategy: downsizing its administrative expenses. The idea has been to stake out more revenue from franchise fees and royalties, and leave pizza sales to the franchisees. The Wednesday filings show the company has closed 12 of its own stores and refranchised seven.

The second quarter is also the first report card for Spangler, who started with the company July 17.

“I applaud the turnaround that Jean and the team have started,” Spangler said in the statement. “I believe we can win, and we are committed to winning.”

For the remainder of the year, the company plans to open fewer of its own franchises and refranchise more company-owned stores.