MTY Food Group Inc. said it will move ahead with Papa Murphy pizza store closures, shutting 68 underperforming corporate-owned locations over the next nine months. Eric Lefebvre said the company made the decision after a detailed store-by-store review.
The plan was disclosed on July 10, 2026, when MTY reported its results for the 13 week period ended May 31, 2026. Lefebvre said the company is trying to address underperforming assets and improve the overall quality of its corporate store portfolio.
Eric Lefebvre and MTY
Lefebvre said the second quarter reflected continued pressure on consumer spending and a challenging operating environment. He also said MTY's asset-light and diversified model continued to generate strong free cash flow from operations.
In the same release, he said MTY remains focused on executing against its development pipeline, with positive store openings progressing in line with plans and a strong slate of openings expected through the balance of the year. That puts the closure plan alongside a separate effort to keep expanding.
MTY store portfolio
MTY said the closures will reduce its store count in the near term. The company said it believes the step will strengthen the business over the long term by reducing losses and allowing it to focus resources on its strongest opportunities.
The company also said it expects an improvement in the pace of openings in the coming quarters and remains confident in its ability to achieve net location growth in the future. The practical question for customers and employees is which 68 locations will go first; MTY has not identified them in the results release, so the plan is being carried out as a nine-month reduction rather than a single day of closures.
MTY Reports Second Quarter Results for Fiscal 2026
MTY said the strategic review process announced on November 17, 2025 is still ongoing, and it paired the closure plan with a quarterly dividend of 37.0¢ per share payable on August 14, 2026 to shareholders registered at the end of the business day on August 4, 2026. The company said it remains committed to disciplined execution, strong cash generation and creating long-term value for shareholders.
