Post on 25-Sep-2020
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2010 Q3 '14 5
Mom & Pop / Regional
3.7%
5.6%
6.6% 6.7%
5.1%
3.4%
1.2%1.6%
0.6%
3.6%3.0%
4.0%3.3%
1.5%
4.6%
8.4%
5.6%
6
1ST
CHOICECUSTOMERS PARTNERS COMMUNITYTEAM
SERVE WITH PURPOSE
PARTNERING FOR PROFITABILITY
FOCUSED DEVELOPMENT
CUSTOMERS 1ST CHOICE
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fresh, handmade dough
fresh vegetables
real meat, no fillers
unique high quality
ingredients
fresh mozzarella
fresh-baked...hot out of your oven
August, 2014
Overall: Restaurant Chains
Overall: Pizza Chains
Food Quality
Speed of Service
Freshness
Value
Politeness of Employees
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CREST®Survey
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11
April 13, 2015
12
millennialsmillennials light users
moms
13
2014 vs. 2012+13%
+9% +7%
July 8, 2014
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Pizza and QSR Average Per Person Spend$7.50 $7.45 $7.34
$3.86
$5.39$6.04
$5.18 $5.13 $5.02 $4.99 $4.84 $4.72
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Source: NPD / CREST.Note: Represents per person spend for the January 2013 to September 2013 time period.(1) Average party size for Pizza Hut is 3.1. (4) Average party size for Little Caesars is 3.4.(2) Average party size for Papa John’s is 3.2. (5) Average party size for Papa Murphy’s is 3.0.(3) Average party size for Domino’s is 3.9.
(1) (2) (3) (4)
(5)
Low
Qu
alit
y
High Price
Low Price
Hig
h Q
ua
lity
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2010 2011 2012 2013 2014 2015-16
Stores with POS Stores with Cash Registers
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1ST
CHOICECUSTOMERS PARTNERS COMMUNITYTEAM
SERVE WITH PURPOSE
PARTNERING FOR PROFITABILITY
PARTNERING FOR PROFITABILITY
FOCUSED DEVELOPMENT
CUSTOMERS 1ST CHOICE
20
customers • Min. 30 surveys per month & 85 + KDS
QSC• AAA
sales & transactions• Positive TX plus Comp%
profit• COGS Var. 0-1.0% of Net sales
speed of service• Avg. for year 3min. or less
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Note: YTD Period 6, 2014, 1,302 Comp. stores.Source: PMI 22
1ST
CHOICECUSTOMERS PARTNERS COMMUNITYTEAM
SERVE WITH PURPOSE
FOCUSED DEVELOPMENT
PARTNERING FOR PROFITABILITY
CUSTOMERS 1ST CHOICE
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1,470+ stores in 38 states & 3 countries!
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2,450
604604
0
1,000
2,000
3,000
4,000
5,000
U.S. StoreCount March
2015
AdditionalStore
Potential
Total StorePotential
1,446
4,5003,054
Existing Markets (Core & Developing) New Markets
Source: Indicia and PMI.Note: Based on U.S. Census Bureau data; 2012 Population Estimate.
# of Stores20.6
24.6
4.4
8.7
19.4
17.9
7.5
15.0
8.6
4.3
6.0
13.9
15.6
11.9
15.7
14.4
9.7
13.5
16.9
12.4
8.0
4.1
2.80.3 2.7 0.4
1.0
2.3
1.55.7
4.3
1.7 6.7 0.4
15.4 1.5
0.20.5
Higher Density
Lower Density
Papa Murphy’s Existing Store Density(stores per million people)
Papa Murphy’s New Store Opportunity
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Store Average Weekly Sales (“AWS”) Performance Improvements – Select Markets
$7,234 $8,075
$8,749 $8,870 $9,119
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
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10
20
11
20
12
20
13
20
14
Phoenix
21 26 30
AWS
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$9,712 $10,013 $10,919 $11,064
$11,715
20
10
20
11
20
12
20
13
20
14
Denver
41 42 46 5142 54
every new store =
+1-2 TV weeksFOCUSED
DEVELOPMENT
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newCREATE
stores
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33 stores
2011112 stores
2015
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build CSD stores in frontier markets
buy CSD stores in frontier markets
build CSD stores in current markets
buy CSD stores in current markets
operate current
CSD stores with excellence
GROWTH5-Phase
Strategy
COMPANY
STORES
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1ST
CHOICECUSTOMERS PARTNERS COMMUNITYTEAM
SERVE WITH PURPOSE
FOCUSED DEVELOPMENT
PARTNERING FOR PROFITABILITY
CUSTOMERS 1ST CHOICE
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Ken CalwellChief Executive Officer
Dan HarmonSVP Operations
Jayson TippChief Development Officer & Technology
Victoria BlackwellSVP Talent/Chief Legal Officer
Years of Restaurant/ Franchise Experience
Selected Prior Experience
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27
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12
Mark HutchensChief Financial Officer 12
Chas HermannInterim Chief Marketing Officer
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with continued growth and profitability…
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38
841924 968
1,067 1,135 1,1851,257 1,301 1,347 1,418 1,461 1,476
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Q1
Total Stores
39
$385.9 $411.4 $444.6 $502.3$584.9 $630.4 $653.3 $701.8 $739.1 $785.6
$849.7
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
System Sales($ millions)
40
9.1%
3.8%2.0%
6.1%
8.5%
2.2%
(3.1)%
5.7%2.9% 2.8%
4.5%
U.S. System Comparable Sales Growth
2008 20132012201120102009 20142007200620052004
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Total Revenues
$48.9 $51.9
$66.9
$80.5
2010 2011 2012 2013 2014
Adjusted EBITDA
$19.5 $19.7 $22.1
$24.4
$27.7
2010 2011 2012 2013 2014
$97.4
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•
•
•
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Attractive Business Model
Earnings Growth
Consistent Comparable Store Sales
Solid Margin Leverage
Disciplined Unit Growth
Target +20% EPS
+2% Comparable Store Sales
Ramping to +10% EBITDA
Ramping to +6%-8% Net Units
Annual Growth Targets