Re FRSH - I agree with your points. I probably would not have bought the stock, if I did not like the product. Even though I think my sampling may be biased, because the store that I frequent, is very well run. Based on yelp reviews from other stores in my town, my conclusion is that other stores may not be that well run.
FRSH is still growing franchises and generates roughly half of their revenues from franchise fees, which are high margin , the remainder comes from company owned stores. So as long as they can grow the franchise side if the business, they don't need new capital to grow.
FWIW, I have bounced the idea off another board and most did not like the idea and many did not like their product either. Some say, it's like frozen pizza (I don't think so) but I do agree that ready made pizza from supermarkets are competition. For me at least, Papa Murphy's is convenient, because the store is close and I can pick the pizza up on my way home from work.
I guess we can agree, that there is a certain market segment in the dimensions freshness & taste, price and convenience for a pizza like Papa Murphy's and I like the fact that they dominate that particular space. It's good enough for a few shares, but I don't think it's worth a major position for me. |
