Papa Murphy's to close up to 50 stores after MTY losses

Papa Murphy's parent MTY Food Group will close 45 to 50 underperforming corporate Papa Murphy pizza stores over the next six to nine months, with the first wave starting the week of July 13, 2026. The cuts are part of a wider plan to shutter 68 corporate restaurants after more than $10 million in combined losses. MTY repossessed many of the targeted sites about two years ago as part of a turnaround effort.

Key Takeaways

• MTY plans to shutter 68 corporate-owned restaurants total, with 45 to 50 being Papa Murphy's locations.
• Targeted stores lost more than $10 million combined in the past 12 months alongside other lagging brands.
• Closures roll out over six to nine months, beginning the week of July 13, 2026.
• Papa Murphy's U.S. store count fell from 1,168 in 2023 to 1,014 in 2025, mostly franchised units.
• MTY says the move cuts near-term store count but should improve long-term corporate profitability.

Why is Papa Murphy's closing up to 50 locations?

Canadian franchisor MTY Food Group announced the shutdowns after a store-by-store review of its corporate portfolio. CEO Eric Lefebvre said the selected restaurants, including Papa Murphy's sites MTY took over roughly two years ago, lost more than $10 million combined over the past 12 months.

MTY disclosed the plan during its second-quarter fiscal 2026 earnings release on July 10, alongside a $7.5 million impairment charge tied to the closure decision. Lefebvre called it a decisive step to reduce losses and focus resources on brands and locations with stronger return potential.

When will the first Papa Murphy pizza store closures happen?

The restructuring begins immediately. MTY said the first series of stores will shutter the week of July 13, 2026. The full process is scheduled to run six to nine months.

Lefebvre added that additional closures or sales remain possible, though he described the effort as gradual rather than a fire sale. MTY operates a vast brand portfolio that also includes Wetzel's Pretzels, Cold Stone Creamery, Pinkberry and Baja Fresh.

What does this mean for MTY and pizza customers?

For investors tracking business restructuring and earnings alerts, the move targets chronic underperformers within MTY's corporate store base. Lefebvre said Papa Murphy's has struggled more than MTY's other U.S. quick-service brands in recent quarters.

Papa Murphy's is known for take-and-bake pizza: customers customize uncooked pies in-store and bake them at home. Most prior shrinkage has hit franchised units, with corporate-owned stores numbering 49 at the end of 2025, according to the chain's franchise disclosure document.

MTY's full earnings statement is available via GlobeNewswire. Customers should check local listings, as not every Papa Murphy's location is corporate-owned and franchised stores may remain open.