Papa Murphy's to Close Up to 50 U.S. Locations Amid Parent Company Restructuring
Papa Murphy's, a U.S. take-and-bake pizza chain owned by Canada's MTY Group, will close 45–50 corporate-owned stores as part of a plan to shutter 68 underperforming restaurants across its brands. The closures, beginning July 2026, follow a two-year revival effort that failed, with affected stores losing over CAD 10 million. CEO Eric Lefebvre cited intense competition and shifting consumer habits. The move reflects broader industry struggles, with Pizza Hut and Papa Johns also closing locations.
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Papa Murphy's to close up to 50 locations amid sales slump
Canadian restaurant franchisor MTY Food Group announced plans to close between 45 and 50 Papa Murphy's take-and-bake pizza stores due to intense competition in the pizza market. CEO Eric Lefebvre stated on an earnings call that the brand is 'suffering a little bit more' in the competitive environment. The company had repossessed three clusters of stores hoping to improve performance, but after nearly two years of efforts, concluded the markets were not appropriate for Papa Murphy's at this time. Across all MTY brands, 68 underperforming corporate-owned stores will close, which collectively lost over $10 million in the past 12 months. Lefebvre called the closures an 'important step' for long-term business health. The closure process will take between six and nine months, with the first series of stores scheduled to close the following week. The company plans to handle closures systematically to protect staff and negotiate properly with landlords.
Yahoo FinancePapa Murphy’s to Close Up to 50 Restaurants
Papa Murphy's, the take-and-bake pizza chain owned by MTY Food Group, is set to close between 45 and 50 corporate-owned stores as part of a broader plan to shutter 68 underperforming restaurants over the next nine months. The closures, most occurring in Q3 2026, follow a two-year effort to revive stores taken back from franchisees. CEO Eric Lefebvre stated these markets are not appropriate for the brand at this time. The chain has seen a nine-year decline in U.S. store count, dropping from 1,537 in 2016 to 1,014 in 2025. The affected locations lost over $10 million in the past year, with average sales declines of 8-9%. Closure costs are estimated at $10-12 million. MTY expects the move to improve long-term profitability while continuing franchise development for other brands like Cold Stone Creamery and Wetzel's Pretzels.
Yahoo FinancePapa Murphy's to Close Up to 50 Restaurants Amid Parent Company Restructuring
MTY Food Group, parent company of Papa Murphy's, announced plans to close 68 underperforming corporate-owned restaurants over the next nine months, with 45-50 of those being Papa Murphy's locations. The closures follow a two-year effort to revive stores taken back from franchisees, which ultimately proved unsuccessful. The affected locations collectively lost over $10 million in the past year, with average sales declines of 8-9%. The closures will cost $10-12 million in lease termination and related expenses but are expected to improve long-term profitability. Papa Murphy's has seen its U.S. store count decline for nine consecutive years, from 1,537 in 2016 to 1,014 in 2025. The chain is struggling alongside other pizza concepts like Pizza Hut, Papa Johns, and MOD Pizza in a highly promotional U.S. pizza market. Despite the closures, MTY projects strong franchise development for other brands like Cold Stone Creamery and Wetzel's Pretzels.
Yahoo FinancePapa Murphy's to Close Up to 50 Stores, Joining Pizza Chain Closures in 2026
Papa Murphy's, the U.S. 'take and bake' pizza chain owned by Canadian conglomerate MTY Food Group, announced it will close between 45 and 50 corporate-owned locations in 2026. The closures were disclosed during MTY's Q2 2026 earnings call, where the company reported revenue of $279.9 million CAD, down 8.2% year-over-year. CEO Eric Lefebvre cited poor performance of specific stores and intense competition in the U.S. pizza market, noting that consumers show little brand loyalty and choose the cheapest option. The closures are part of a broader trend, with Pizza Hut and Papa John's also shuttering hundreds of locations in 2026. Papa Murphy's had 1,014 total stores as of November 2025, including 965 franchised and 49 company-operated locations. The majority of the 68 total closures across MTY's brands will be Papa Murphy's stores.
Yahoo FinancePapa Murphy's to Close Up to 50 Locations as Parent Company Restructures
Papa Murphy's, a major pizza chain, is preparing to close up to 50 corporate-owned restaurants as part of a broader restructuring by its parent company, MTY Group. CEO Eric Lefebvre announced the closures during MTY Group's second-quarter fiscal 2026 earnings call, stating that 68 underperforming corporate restaurants across all brands will be shuttered over the next six to nine months, with up to 50 being Papa Murphy's locations. The affected stores collectively generated over CAD 10 million in losses. The first shutdowns are expected to begin the week of July 13, 2026. The move is part of an industry-wide trend, with Pizza Hut and Papa Johns also announcing significant closures due to higher operating costs, shifting consumer spending, and intense competition. MTY Group expects the restructuring to improve profitability despite short-term closure costs of CAD 10-12 million.
Yahoo FinancePapa Murphy's to Close Up to 50 Locations as Parent Company Restructures
Papa Murphy's, a major pizza chain, is closing up to 50 corporate-owned restaurants as part of a broader restructuring by its parent company, MTY Group. CEO Eric Lefebvre announced during the Q2 2026 earnings call that MTY Group will close 68 underperforming corporate-owned restaurants over the next six to nine months, with up to 50 being Papa Murphy's locations. The closures, beginning the week of July 13, follow a 'challenging period' for the business, with affected stores generating over CAD 10 million in losses. The company expects closure and lease termination costs of CAD 10-12 million but believes the move will improve long-term profitability. The restructuring reflects broader industry trends, as pizza chains like Pizza Hut and Papa Johns have also announced significant store closures amid higher operating costs and intense competition.
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