Papa Murphy’s is expected to account for around 45 to 50 of the 68 underperforming corporate-owned restaurants that MTY Food Group plans to close as part of a wider restructuring. The closures follow a review of loss-making locations and are intended to improve overall performance.
This does not mean Papa Murphy’s is shutting down as a chain. The confirmed total of 68 closures applies across MTY’s portfolio, with the Papa Murphy’s estimate based on management comments during the company’s fiscal Q2 2026 earnings call.
Key highlights:
- 68 corporate-owned MTY restaurants are planned for closure.
- Around 45 to 50 are expected to be Papa Murphy’s locations.
- The affected restaurants recorded more than CAD $10 million in losses over 12 months.
- Closure costs are estimated at CAD $10–12 million.
- The process is expected to take six to nine months.
- No verified list of affected locations has been released.
- Papa Murphy’s is not shutting down chain-wide.
The announcement relates to a targeted restructuring of underperforming restaurants, not the closure of the Papa Murphy’s brand.
Why Is Papa Murphy’s Closing Restaurants in 2026?
Papa Murphy’s restaurant closures in 2026 are expected to form the largest part of MTY’s plan to remove underperforming corporate-owned locations.
Management concluded after a detailed review that some restaurants were continuing to lose money and were no longer meeting expectations for the company’s corporate portfolio.
The main factors behind the closures include:
- Persistent losses at the targeted corporate-owned restaurants;
- A store-by-store review of financial performance;
- Pressure from softer consumer spending and operating conditions;
- A decision to focus resources on stronger locations;
- A wider effort to improve corporate-store profitability.
Chief Executive Officer Eric Lefebvre said the company was taking “decisive action to improve the quality and profitability of our corporate store portfolio”.
The decision is therefore based on restaurant-level economics. It should not be interpreted as evidence that every Papa Murphy’s location, franchisee or market faces the same situation.
How Many Papa Murphy’s Restaurants Are Expected to Close?
Approximately 45 to 50 Papa Murphy’s restaurants are expected to be included in MTY’s wider plan to close 68 corporate-owned locations. The remaining closures are expected to involve other businesses within the company’s restaurant portfolio.
This distinction explains why headlines use different numbers.
Sixty-eight is the confirmed total number of corporate-owned restaurants targeted across the wider MTY portfolio. Forty-five to 50 is the reported estimate for the Papa Murphy’s portion.
The final Papa Murphy’s number should therefore continue to be described as an estimate until the restructuring is completed or a definitive total is released.
What Financial Problems Led MTY Group to Target These Restaurants?
The financial case for the closures centres on sustained losses. The 68 targeted corporate-owned locations generated combined losses of more than CAD $10 million during the previous 12 months.
MTY also expects restaurant closures and early lease terminations to cost approximately CAD $10 million to $12 million, meaning the restructuring will involve significant near-term expenses before any longer-term benefits can be assessed. The company’s official fiscal Q2 results provide the underlying financial figures.
The Cost of Underperforming Corporate Restaurants
Corporate-owned restaurants expose the parent company directly to store-level results. When revenue and margins are not enough to cover costs such as labour, rent, food and utilities, the financial losses remain with the company.
For fiscal Q2 2026, MTY reported revenue of approximately CAD $279.9 million, compared with about CAD $304.9 million a year earlier.
Normalized adjusted EBITDA was approximately CAD $60.2 million, down from about CAD $70 million in the comparable quarter.
Why Did MTY Choose Closures Instead of Continuing the Turnaround?
MTY Food Group reviewed the performance of its corporate-owned restaurants after efforts to improve their results.
According to industry reports, many of the Papa Murphy’s locations expected to close had been taken over about two years earlier but continued to generate losses.
Reasons behind the decision include:
- Many locations remained unprofitable despite turnaround efforts.
- A store-by-store review identified restaurants unsuitable for continued operation.
- Closing underperforming sites was considered a better long-term option.
Restaurant operators can choose to continue investing in a turnaround, sell or refranchise locations where possible, or close them. MTY’s latest review concluded that closure was the most appropriate course for the identified restaurants.
Near-Term Costs and the Longer-Term Goal
Closing restaurants can reduce future operating losses, but the process itself costs money. Lease settlements and other exit expenses are expected to affect cash flow in the short term.
The longer-term objective is to remove recurring losses and concentrate resources on healthier operations. Whether the strategy delivers the intended improvement will become clearer in future financial results.
Which Papa Murphy’s Locations Are Closing, and Is a Full List Available?
A complete, verified public list of every Papa Murphy’s restaurant included in the 2026 restructuring has not been confirmed in the information reviewed as of July 13, 2026.
That distinction matters because an individual restaurant can disappear from listings or stop operating for reasons unrelated to this specific restructuring. A location may be temporarily closed, permanently shut, transferred, sold or operated by a franchisee.
A reliable closure tracker should distinguish among confirmed closures, reported closures and unverified claims.
Customers checking a particular restaurant should seek current location-level information and direct confirmation where possible. An outdated directory entry or an unsupported social media post is not enough to establish that a restaurant is one of the expected 45 to 50 Papa Murphy’s closures.
Until more individual locations are verified, claims about a nationwide “full closure list” should be treated cautiously.
What Does the Restructuring Mean for Papa Murphy’s and MTY Food Group?
The restructuring suggests that MTY is prioritizing the financial quality of its corporate restaurant portfolio rather than maintaining every location simply to preserve total store count.
A Smaller Corporate Portfolio Could Reduce Losses
Closing persistently unprofitable restaurants can remove recurring losses and allow management to focus attention and resources on stronger operations.
The strategy does not guarantee improved financial performance. Closure costs, lease obligations, consumer demand and the results of the remaining restaurants will still matter.
How Do Corporate and Franchised Restaurants Differ?
MTY acquired Papa Murphy’s in 2019, according to its official corporate acquisition history.
The distinction between corporate and franchised locations is important because the current restructuring specifically targets corporate-owned restaurants.
Corporate-owned versus franchised restaurants:
| Operating model | Who operates the restaurant? | Who carries direct store-level operating risk? |
| Corporate-owned | The company or its subsidiary | The company |
| Franchised | An independent franchise operator | Primarily the franchisee, subject to franchise agreements |
The closure of a corporate-owned restaurant therefore should not automatically be interpreted as evidence that an independently operated franchise faces the same financial position.
What Should Investors Watch Next?
Important indicators include:
- actual closure and lease-related costs;
- changes in corporate restaurant losses;
- cash flow following the restructuring;
- same-store sales trends;
- the number of remaining corporate locations;
- further sales, refranchising or closures.
Future quarterly results will provide better evidence of whether removing the loss-making restaurants improves the performance of the remaining corporate portfolio.
Are Papa Murphy’s Restaurants in Canada Affected by the Closures?
The information currently available does not support a broad claim that Canadian Papa Murphy’s restaurants are included in the announced closure plan.
Current industry reporting around the expected 45 to 50 Papa Murphy’s closures has focused on restaurants associated with the U.S. business. That does not rule out every possible location-level development, but specific Canadian closures should not be claimed without reliable confirmation.
The Canada connection remains important because MTY is a Montreal-based company. Decisions involving restaurants in the United States can still affect the consolidated financial performance, cash flow and strategy of the Canadian parent company.
For Canadian investors and business readers, the key issue is therefore broader than the location of each closing restaurant. It is whether the restructuring successfully reduces losses without creating larger operational or financial pressures elsewhere in the portfolio.
Is Papa Murphy’s Going Out of Business or Is This a Targeted Restructuring?
The available evidence supports the description targeted restructuring, not a chain-wide shutdown. Papa Murphy’s has not announced that it is going out of business.
What Is Actually Confirmed?
MTY has confirmed plans to close 68 underperforming corporate-owned restaurants across its portfolio. Separate management comments reported from the earnings call indicate that approximately 45 to 50 are expected to be Papa Murphy’s locations.
Papa Murphy’s also continues to maintain an official restaurant location directory for operating locations. A directory is not a future closure list, but it can help customers check the current status and details of a particular restaurant.
Why Does the 68-Store Figure Cause Confusion?
The 68-location figure appears in the company’s official restructuring announcement, while many news headlines focus specifically on Papa Murphy’s.
When those two facts are combined without context, readers may incorrectly conclude that all 68 restaurants belong to the pizza chain.
The more accurate description is: 68 MTY corporate-owned restaurants are targeted overall, including an expected 45 to 50 Papa Murphy’s locations.
What Misinformation Should Readers Avoid?
Several claims circulating online can create confusion about the planned restaurant closures. It is important to separate the confirmed facts from assumptions as the restructuring continues.
- “All 68 closures are Papa Murphy’s.” The total covers MTY’s wider corporate portfolio.
- “Papa Murphy’s is closing every restaurant.” No chain-wide shutdown has been announced.
- “Every franchise location is affected.” The current restructuring targets corporate-owned restaurants.
- “Every closure reported online is part of this plan.” Individual locations require verification.
Keeping these distinctions clear is important as more local reports emerge during the restructuring period.
What Could Happen Next as MTY Carries Out the Closure Plan?
MTY Food Group expects the restructuring to take around six to nine months, so affected restaurants are likely to close at different times rather than all at once. The exact timeline will depend on factors such as lease agreements and operational requirements.
As the process continues, more confirmed location-level announcements and local reports are expected. Future financial results may also show the final closure costs, the reduction in operating losses and any changes to MTY’s corporate restaurant strategy.
The restructuring reflects a business decision to close persistently underperforming corporate-owned restaurants rather than continue investing in them.
The key developments to watch are the confirmed number of Papa Murphy’s closures, verified affected locations and the financial impact reported in future MTY results.
Conclusion
The Papa Murphy’s restaurant closures in 2026 are best understood as a targeted restructuring, not a chain-wide shutdown.
MTY Food Group is closing underperforming corporate-owned locations to reduce ongoing losses and strengthen its wider portfolio.
With about 45 to 50 Papa Murphy’s restaurants expected to be affected, the next key developments will be confirmed location details, final closure numbers, and future financial results showing whether the strategy improves the performance of the remaining business overall.
Frequently Asked Questions
Who owns Papa Murphy’s in 2026?
Papa Murphy’s is owned by MTY Food Group, a Montreal-based multi-brand restaurant operator and franchisor. MTY acquired the take-and-bake pizza business in 2019.
Are franchised Papa Murphy’s restaurants included in the 68 closures?
The announced restructuring focuses on underperforming corporate-owned restaurants. It should not automatically be interpreted as applying to independently operated franchise locations.
When will the affected Papa Murphy’s restaurants actually close?
The broader restructuring is expected to take approximately six to nine months. Individual restaurants may close at different times as operational and lease-related issues are addressed.
How much money were the targeted restaurants losing?
The 68 targeted corporate-owned restaurants generated combined losses of more than CAD $10 million during the previous 12 months.
Will gift cards or rewards be affected by a local closure?
Customers should check the current terms of the relevant program and seek direct confirmation about a specific account or restaurant. A local closure should not automatically be assumed to cancel every wider gift card or rewards program.
Could some struggling restaurants be sold or refranchised?
Selling or refranchising can be a portfolio-management option in the restaurant industry. However, any different outcome for a specific restaurant should only be presented as confirmed when reliable information becomes available.
Could more Papa Murphy’s restaurants close later?
Future decisions may depend on restaurant performance and further portfolio reviews. No additional Papa Murphy’s closure number should be treated as confirmed unless the company makes a new announcement.
Editorial Note:
This article covers a developing corporate restructuring story. It distinguishes between the 68 corporate-owned restaurant closures confirmed across MTY’s wider portfolio and the reported estimate that approximately 45 to 50 may be Papa Murphy’s locations.
No individual restaurant should be described as part of the restructuring without reliable location-level confirmation. The article may be updated if material new information changes the closure count, timeline or affected locations.
How We Checked?
EN Business reviewed the company’s fiscal Q2 2026 financial disclosure, corporate history and current restaurant-location information. The findings were cross-checked against management comments reported from the earnings call and the reference coverage supplied for this article.
