Papa Murphys posts 54M loss in Q1

first_imgA collision of fewer sales, severance payments and a national television ad campaign have led Papa Murphy’s to a $5.4 million loss for the first quarter of fiscal year 2017.Revenues, when compared with last year’s fiscal first quarter, fell 3 percent to $32 million for the quarter, but the dip was compounded by a 30-percent rise in expenses, particularly in a segment for selling, general and administrative expenses.Total expenses rose $9.3 million to $39.9 million for the quarter, pushing the company’s first-quarter profits into the red. Tax provisions absorbed some of those expenses, though, according to the filings.A lot of the expenses can be traced to television commercials the company bought to target busy moms. Called “Murphy’s Law,” the six-week campaign aired to national audiences to showcase Papa Murphy’s pizza as a reliable dinner option. Papa Murphy’s spent $8.3 million on the commercials.Chairwoman and interim CEO Jean Birch called the campaign “disappointing,” but she said the misstep reinforced the company’s strategy to focus on regional marketing, working on its products and improving customer convenience.last_img

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