Weighing Machine
Long/short equity

Papa Murphy's: Franchisee Relief Plea Portends Imminent EBITDA Decline - Shares Could Fall 80+%

Though Papa Murphy's (NASDAQ:FRSH) share price has fallen 12% from its April IPO price, recent evidence suggests there could be much more downside to come. The Papa Murphy's Franchise Association (PMFA) is an organization which represents the interests of its franchisees (who collectively operate 1300+ stores). Following the annual meeting of the Papa Murphy's Franchisee Association on May 30, the organization shared its June letter with a local newspaper highlighting that the association is seeking relief for a number of struggling franchisees. Here is an excerpt:

By far, the No. 1 concern and highest priority is relief to low-volume stores. This issue is a clear and immediate danger to the system as a whole, as well as to...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details