Does Poppa Murphy's Have The Worst Business Model Ever?

Joined
Jun 11, 2013
Messages
41,723
Reputation
6,378
Daps
109,258
Reppin
Birmingham, Alabama
Think about it. Everybody loves Pizza, probably the food that's eaten the most in america. But not everyone can make a good home made pizza. Where would they get the ingredients? How would they get the ingredients? What ingredients would they even want or would even know would work well with a pizza? They solve all of these problems


But YOU are still using your gas money to go and pick up the pizza

And YOUR oven to cook the pizza

And it's not cheap like Frozen pizza or Little Caesars. That means you are asking the customer to pay 12-14 a pie, for something they have to get and cook themselves...

and..I found this from earlier this year.

Papa Murphy's stock gets rare up day, but doubters persist
By Chris Nichols May 23, 2014 2:55 P

Breakout
Papa Murphy's (FRSH) has traded for less than a month, but its first quarterly report is already out, and it's providing a good sense of how Wall Street still views this stock. The answer? Not especially well.

Although the numbers compared well with what Papa Murphy's projected before completing its IPO, traders simply aren't yet scrambling for this name.

[See related: 'Take-and-bake': Will investors buy Papa Murphy's story?]

Recently, shares were up 3.3% to $9.35, off session highs at $9.68. Viewed exclusively as a one-day event, it would be easy to see this as an endorsement of the name. In reality, this action is tepid for a stock that's been a terrible performer since going public earlier this month. In 14 trading sessions before Friday, only two days had seen gains. The day of its quarterly report was the worst one yet, with the stock closing down 7.3%.

challenges aren't insignificant from an investment standpoint, and they're largely competitive in nature. While the company crows about its popularity with diners, it also competes in a heavily populated arena. The U.S. has more than 70,000 pizza sellers, and most do the cooking for you. Papa Murphy's doesn't. It's of the "take and bake" (it doesn't deliver) variety, meaning you get the pizza and toppings you want, then cook it all in your own oven.

From Papa Murphy's perspective, these are advantages, in that they reduce equipment and labor costs, allow the stores to focus on the fresh-ingredients component of the operation, and provide customers with a hot-out-of-the-oven pizza right at home. But at the same time, these qualities also make Papa Murphy's something of a limited-service grocery store, one that does only part of the work for the buyer as opposed to being an establishment of true convenience — a restaurant, in other words.

Pizza is obviously popular across the nation, with $37 billion in sales. There's room for a host of shops, and for Papa Murphy's to be part of this. But the question isn't can it exist, it's how does it take share and win in a crowded space? That's obviously something investors don't believe has been answered yet — at least not to the degree that has them choosing it over public stores such as Papa John's (PZZA) and Domino's (DPZ). Pizza Hut, the biggest name in the group, is part of Yum Brands (YUM).

If you're an investor, you want to bet on Papa Murphy's if you believe the strength of its product offering in some way elevates it above the others. For too many people, pizza is pizza is pizza, in essence. Yes, of course there are differences, but in a crunch, bad pizza is generally still OK.

The easiest contrast in terms of Wall Street's perception here is with Zoe's Kitchen (ZOES). This Mediterranean food chain went public a couple of weeks before Papa Murphy's, immediately traded much higher than its offer price and has stayed up. Why? One, it's much smaller, meaning it has a greater ability to get rapid growth. Two, it's a type of food that hasn't reached saturation point in the U.S. Three, it's in the "fast casual" set that's been popular with restaurant visitors who aren't as keen on traditional fast food venues or casual-dining stores such as Chili's and Applebee's.

[See related: Zoe's Kitchen jumps above offering to trade in mid-$20s]

In the end, you can like Papa Murphy's pizzas. You can like the company and the bake-it-yourself model. But traders have made it clear that, as a stock, they've not seen any good reason to get behind it. Unless its growth metrics start to go through the roof, the company just doesn't stand out amid other large, modest-sales-expansion chains, where menu-price fights aren't uncommon. And who's going to buy a newly public pizza maker on its value characteristics?
 

Malta

Sweetwater
Joined
Apr 30, 2012
Messages
66,896
Reputation
15,260
Daps
279,772
Reppin
Now who else wanna fukk with Hollywood Court?
All states have pigs and cows too. I just object to the notion of regional superiority when it comes to foods, I've had pizza in Atlantic City, that shyt wasn't the end all be all, maybe If I was standing in NYC city limits my mind would have been blown. It's like people saying the south has great bbq, Well yeah it does, I've also tasted some AWFUL bbq down here. And I'm sure some guy from Upstate NY Camden, or Baltimore can make some good ass BBQ at least capable of competing with the south.


:russ:

When people think of great pizza, they surely think of Atlantic City. And you can object to regional superiority in food all you want, it's a fact some areas have better types of food than others because of competition. If there's 15 pizza joints in a 10 block radius one of them is going to be the best of the group and have better food as a result of having to compete with 14 other places in such close proximity.
 

L&HH

Veteran
Joined
May 18, 2012
Messages
53,807
Reputation
5,940
Daps
163,035
Reppin
PG x MD
I had it once when i was in phoenix because I had a free coupon. I would never spend money on it tho. shyt is stupid to me.
you drive there, they put together your pizza via subway assembly type line, pay for it, take it home, bake it, then eat it.
easier just to order it or put one together yourself at home. fukk all that nonsense

How did the pizza taste though?
 

Dank Hill

Superstar
Supporter
Joined
May 25, 2012
Messages
6,711
Reputation
1,498
Daps
23,255
How did the pizza taste though?
I'm not going to lie, it was pretty good breh. If I didn't have to jump thru all the hoops to eat it then I would pay actually money for one.

One good thing did come out of me going there tho. My girl was like fukk all of that, i'm going to learn how to make a pizza at home. Now when I want a pizza she whips one up just as good as papa murphy's
 
Joined
Jun 11, 2013
Messages
41,723
Reputation
6,378
Daps
109,258
Reppin
Birmingham, Alabama
:russ:

When people think of great pizza, they surely think of Atlantic City. And you can object to regional superiority in food all you want, it's a fact some areas have better types of food than others because of competition. If there's 15 pizza joints in a 10 block radius one of them is going to be the best of the group and have better food as a result of having to compete with 14 other places in such close proximity.

I agree, but quit stanning for NYC Pizza fam.

I don't think that many recipes are lost in the 2hr drive between locations.
 

NatiboyB

Veteran
Supporter
Joined
Apr 30, 2012
Messages
65,187
Reputation
3,905
Daps
103,580
So my homie hipped me to Papa Murphy's pizza earlier today, I've personally never heard of it or knew we had one in Birmingham.

But alas...We do.

papa-murphys-exterior*1200xx1920-1080-0-0.jpg


Note. This is not the Bham locations.

And the company is famous for its.....wait for it.....TAKE AND BAKE PIZZA!

papa-murphys-take-n-bake-pizza.png



I'm fukking serious. You literally GET OFF OF YOUR ASS. DRIVE TO PAPA MURPHY'S RESTAURANT ...PURCHASE A PIZZA....TAKE IT HOME....AND MAKE IT YOUR fukkING STOVE...

Seriously WHO Thought that was smart. I was looking at this idiot like :stopitslime:after he told me that stupid shyt.

:heh: Who the fukk does all that to get a pizza?



I said the same thing shyts actually decent I put it a tier above little ceasars and right below the big 3 delivery companies (dominoes, PH, PJ) which are all below local and home Made spots.
 

Chelsea Bridge

Superstar
Supporter
Joined
Aug 3, 2012
Messages
18,675
Reputation
3,199
Daps
60,155
Reppin
NULL
Not in Bham it isn't :banderas: Easily some of the cleanest and best tasting tap water in the nation.

Florida tap water is terrible btw. Maybe it's not in all the cities, but in most of them shyt taste like medicine.

I think there's too much fluoride or something in the water where I live. Whatever is it, it's not good. I spend about 7 dollars a week on bottled water.
 

Dwight Howard

Superstar
Joined
May 24, 2012
Messages
20,950
Reputation
-3,437
Daps
59,672
Reppin
NULL
not really. Papa Murphys is pretty big in the south and the pizzas are pretty fukkin good. you can get them custom made too
 
Top