Papa Murphy's 10-Q 4 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	3 Months Ended
	Mar. 28, 2016	Apr. 29, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Papa Murphy's Holdings, Inc.
Entity Central Index Key	1,592,379
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 28, 2016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2,016
Amendment Flag	false
Entity Common Stock, Shares Outstanding		16,938,700

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015
Revenues
Franchise royalties	$ 10,496	$ 10,679
Franchise and development fees	954	1,140
Company-owned store sales	20,674	17,167
Other	861	182
Total revenues	32,985	29,168
Store operating costs:
Cost of food and packaging	7,272	6,089
Compensation and benefits	5,734	4,354
Advertising	2,166	1,669
Occupancy	1,375	1,003
Other store operating costs	2,291	1,445
Selling, general and administrative	9,055	6,882
Depreciation and amortization	2,715	2,319
Loss on disposal of property and equipment	54	59
Total costs and expenses	30,662	23,820
Operating Income	2,323	5,348
Interest expense, net	1,179	1,130
Other expense, net	42	2
Income Before Income Taxes	1,102	4,216
Provision for income taxes	460	1,620
Net Income	$ 642	$ 2,596
Earnings per share of common stock
Basic earnings per share (usd per share)	$ 0.04	$ 0.16
Diluted earnings per share (usd per share)	$ 0.04	$ 0.15
Weighted average common stock outstanding
Basic (in shares)	16,716,610	16,604,206
Diluted (in shares)	16,753,294	16,791,684

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 28, 2016	Dec. 28, 2015
Current Assets
Cash and cash equivalents	$ 481	$ 6,867
Accounts receivable, net	3,269	4,944
Notes receivable, net	81	78
Inventories	853	868
Prepaid expenses and other current assets	5,329	6,139
Total current assets	10,013	18,896
Property and equipment, net	23,128	21,261
Notes receivable, net of current portion	121	143
Goodwill	106,506	106,506
Trade name and trademarks	87,002	87,002
Definite-life intangibles, net	40,095	41,366
Other assets	324	297
Total assets	267,189	275,471
Current Liabilities
Accounts payable	4,896	9,798
Accrued expenses and other current liabilities	7,767	9,756
Current portion of unearned franchise and development fees	1,470	1,795
Current portion of long-term debt	2,279	2,800
Total current liabilities	16,412	24,149
Long-term debt, net of current portion	106,517	108,237
Unearned franchise and development fees, net of current portion	821	540
Deferred tax liability	42,096	42,439
Other long-term liabilities	2,824	2,450
Total liabilities	$ 168,670	$ 177,815
Commitments and contingencies (Note 12)
Stockholders' Equity
Preferred stock, value issued	$ 0	$ 0
Common stock, value issued	169	169
Additional paid-in capital	119,063	118,842
Stock subscriptions receivable	100	100
Accumulated deficit	(20,613)	(21,255)
Total stockholders' equity	98,519	97,656
Total liabilities and stockholders' equity	$ 267,189	$ 275,471

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 28, 2016	Dec. 28, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	16,942,932	16,949,720

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015
Operating Activities
Net income	$ 642	$ 2,596
Adjustments to reconcile to cash from operating activities
Depreciation and amortization	2,715	2,319
Loss on disposal of property and equipment	(54)	(59)
Non-cash employee equity compensation	231	156
Other non-cash items	81	80
Change in operating assets and liabilities
Accounts receivable	1,539	110
Prepaid expenses and other assets	878	617
Unearned franchise and development fees	(44)	(261)
Accounts payable	(2,533)	1,178
Accrued expenses and other liabilities	(1,787)	(2,227)
Deferred taxes	(343)	860
Net cash from operating activities	1,433	5,487
Investing Activities
Acquisition of property and equipment	(5,642)	(1,201)
Acquisition of stores, less cash acquired	0	(7,671)
Proceeds from Sale of Property, Plant, and Equipment	136	0
Issuance of notes receivable	0	250
Payments received on notes receivable	18	18
Investment in cost-method investee	0	(500)
Net cash from investing activities	(5,488)	(9,604)
Financing Activities
Payments on long-term debt	3,321	0
Advances on revolver	1,000	0
Repurchases of common stock	(10)	(1)
Proceeds from exercise of stock options	0	51
Investment by noncontrolling interest holders	0	56
Net cash from financing activities	(2,331)	106
Net change in cash and cash equivalents	(6,386)	(4,011)
Cash and Cash Equivalents, beginning of year	6,867
Cash and Cash Equivalents, end of period	481
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for interest	1,084	1,080
Cash paid during the period for income taxes	2	3
Noncash Supplemental Disclosures of Investing and Financing Activities
Acquisition of property and equipment in accounts payable	$ 705	$ 295

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 28, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Description of business Papa Murphy’s Holdings, Inc. (“Papa Murphy’s” or the “Company”), together with its subsidiaries, is a franchisor and operator of a Take ‘N’ Bake pizza chain. The Company franchises the right to operate Papa Murphy’s Take ‘N’ Bake pizza franchises and operates Papa Murphy’s Take ‘N’ Bake pizza stores owned by the Company. As of March 28, 2016 , the Company had 1,555 stores consisting of 1,513 domestic stores ( 1,378 franchised stores and 135 Company-owned stores) across 38 states, plus 42 franchised stores in Canada and the United Arab Emirates. Substantially all of the Company’s revenues are derived from retail sales of pizza and other food and beverage products to the general public by Company-owned stores and the collection of franchise royalties and fees associated with franchise and development rights. Basis of presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “ SEC ”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States (“ GAAP ”) for complete financial statements. In the Company’s opinion, all necessary adjustments, consisting of only normal recurring adjustments, have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2015 . During the three months ended March 28, 2016, the Company early adopted ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ ASU 2016-09 ”). The Company applied the new guidance on a modified retrospective basis through a cumulative-effect adjustment. As a result, changes have been made to the presentation of Stockholders’ Equity in the Condensed Consolidated Balance Sheets at December 28, 2015 . See Recent Accounting Pronouncements below for additional information. A summary of the changes made to the Condensed Consolidated Balance Sheets at December 28, 2015 , is included in the following table: (in thousands) As Filed Updated Additional paid-in capital $ 118,801 $ 118,842 Accumulated deficit (21,214 ) (21,255 ) Principles of consolidation The interim unaudited condensed consolidated financial statements include the accounts of Papa Murphy’s Holdings, Inc., its subsidiaries and certain entities which the Company consolidates as variable interest entities (“ VIE s”). All significant intercompany transactions and balances have been eliminated. Throughout the interim unaudited condensed consolidated financial statements and the related notes thereto, “Papa Murphy’s” and “the Company” refer to Papa Murphy’s Holdings, Inc. and its consolidated subsidiaries. Fiscal year The Company uses a 52- or 53-week fiscal year, ending on the Monday nearest to December 31. Fiscal year 2016 is a 53-week year and 2015 was a 52-week year. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. References to 2016 and 2015 are references to fiscal years ending January 2, 2017 , and ended December 28, 2015 , respectively. Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU 2016-09 , which simplifies several aspects of the accounting for share-based payment awards to employees, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. The effective date for ASU 2016-09 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued. All amendments in ASU 2016-09 that apply must be adopted in the same period. The Company early adopted ASU 2016-09 at the beginning of fiscal year 2016. As permitted under ASU 2016-09 , the Company has elected to account for forfeitures in compensation cost when they occur in order to ease the administrative burden of estimating forfeitures. The effect of adopting ASU 2016-09 is reflected in Stockholders’ Equity in the Condensed Consolidated Balance Sheets on a modified retrospective basis through a cumulative-effect adjustment. See Basis of Presentation above for additional information. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ ASU 2014-09 ”), a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under GAAP. The original effective date for ASU 2014-09 would have required adoption by the Company in the first quarter of fiscal 2017 with early adoption prohibited. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date , which defers the effective date of ASU 2014-09 for one year and permits early adoption in accordance with the original effective date of ASU 2014-09 . In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which is an amendment to the new revenue recognition standard on assessing whether an entity is a principal or an agent in a revenue transaction. This amendment addresses implementation issues that were discussed by the Revenue Recognition Transition Resource Group to clarify the principal versus agent assessment and lead to more consistent application. This new standard has the same effective date and transition requirements as ASU 2014-09 . The new revenue standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company has not yet selected a transition method. The Company is continuing to evaluate the impact the adoption of this standard will have on the recognition of revenue. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ ASU 2016-02 ”). This update requires that lessees recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than twelve months. ASU 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include both qualitative and quantitative information. The effective date for ASU 2016-02 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with earlier adoption permitted. The Company is still evaluating the impact of ASU 2016-02 on its financial position and results of operations.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	3 Months Ended
	Mar. 28, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: (in thousands) March 28, 2016 December 28, 2015 Prepaid media development costs $ 216 $ 352 Prepaid software and support 1,048 464 Prepaid rents 527 477 Prepaid insurance 517 602 Taxes receivable 2,101 2,872 POS software licenses for resale — 660 Assets held for sale 599 605 Advertising cooperative assets, restricted 172 26 Other 149 81 Total prepaid expenses and other current assets $ 5,329 $ 6,139 The Company recognizes software license revenue upon the resale of Point of Sale (“ POS ”) software licenses to franchise owners at cost. The income from the sale is included in Other revenues and the related expense is recorded in Selling, general and administrative costs on the Condensed Consolidated Statements of Net Income . POS software license revenue during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 POS software license revenue $ 657 $ 186

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 28, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment are net of accumulated depreciation of $15.2 million and $13.8 million at March 28, 2016 , and December 28, 2015 , respectively. Depreciation expense during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Depreciation expense $ 1,444 $ 1,004

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 28, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets are net of accumulated amortization of $23.8 million and $23.0 million as of March 28, 2016 , and December 28, 2015 , respectively. Amortization expense during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Amortization expense $ 1,271 $ 1,315

Receivables

Receivables	3 Months Ended
	Mar. 28, 2016
Receivables [Abstract]
Notes Receivable	Notes Receivable Notes receivable consists of a note maturing in 2020 that is collateralized by store assets. Changes in the account balance represent amortization payments collected per the terms of the agreement. Accounts Receivable The Company’s allowance for doubtful accounts is as follows: (in thousands) March 28, 2016 December 28, 2015 Allowance for doubtful accounts $ 33 $ 31

Financing Arrangements

Financing Arrangements	3 Months Ended
	Mar. 28, 2016
Debt Disclosure [Abstract]
Financing Arrangements	Long-term debt consists of the following: (in thousands) March 28, 2016 December 28, 2015 2014 Credit Facility Term loan $ 105,879 $ 109,200 Revolving line of credit 1,000 — Notes payable 3,000 3,000 Total principal amount of long-term debt 109,879 112,200 Unamortized debt issuance costs (1,083 ) (1,163 ) Total long-term debt 108,796 111,037 Less current portion (2,279 ) (2,800 ) Total long-term debt, net of current portion $ 106,517 $ 108,237 2014 senior secured credit facility On August 28, 2014, PMI Holdings, Inc., a wholly-owned subsidiary of Papa Murphy’s Holdings, Inc., entered into a $132.0 million senior secured credit facility (the “ 2014 Credit Facility ”) consisting of a $112.0 million term loan and a $20.0 million revolving credit facility, which includes a $2.5 million letter of credit subfacility and a $1.0 million swing-line loan subfacility. The term loan and any loans made under the revolving credit facility mature in August 2019 . As of March 28, 2016 , $105.0 million of the outstanding term loan balance was subject to the LIBOR rate option at 3.69% , and the remaining $0.9 million was subject to the base rate option at 5.50% . As of March 28, 2016 , the revolving credit facility was subject to the base rate option at 5.75% . With a maturity date of over one year from March 28, 2016 , balances outstanding under the 2014 Credit Facility are classified as non-current on the Condensed Consolidated Balance Sheets , except for mandatory, minimum term loan amortization payments due on the last day of each fiscal quarter. Minimum term loan amortization payments are $0.7 million , increasing to $1.4 million in the third fiscal quarter of 2016. A portion of the Company’s future term loan amortization payments have been made in advance of their due dates. The weighted average interest rate for all borrowings under our 2014 Credit Facility for the first quarter of 2016 was 3.74% . Notes payable Papa Murphy’s Company Stores, Inc., a wholly owned subsidiary of Papa Murphy’s Holdings, Inc., has a $3.0 million note payable which bears interest at 5% and matures in December 2018 . This note is subordinated to the 2014 Credit Facility .

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 28, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement	The Company determines the fair value of assets and liabilities based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. GAAP defines a fair value hierarchy that prioritizes the assumptions used to measure fair value. The three levels of the fair value hierarchy are defined as follows: ▪ Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. ▪ Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. ▪ Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis: March 28, 2016 December 28, 2015 (in thousands) CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE FAIR VALUE MEASUREMENTS Financial assets Notes receivable (1) $ 202 $ 205 $ 221 $ 224 Level 3 (1) The fair value of notes receivable was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread. Financial instruments not included in the table above consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate carrying value because of the short-term nature of the accounts. The fair value of long-term debt approximates carrying value because the borrowings are made with variable market rates and negotiated terms and conditions that are consistent with current market rates.

Accrued and Other Liabilities

Accrued and Other Liabilities	3 Months Ended
	Mar. 28, 2016
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other liabilities consist of the following: (in thousands) March 28, 2016 December 28, 2015 Accrued compensation and related costs $ 2,491 $ 3,699 Gift cards payable 2,419 2,902 Accrued interest and non-income taxes payable 623 855 Convention fund balance 942 626 Unearned product rebates 498 922 Advertising cooperative liabilities 260 137 Other 534 615 $ 7,767 $ 9,756

Income Taxes

Income Taxes	3 Months Ended
	Mar. 28, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Information on the Company’s income taxes for the periods reported is as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Provision for income taxes $ 460 $ 1,620 Income before income taxes 1,102 4,216 Effective income tax rate 41.7 % 38.4 % The effective income tax rates for the three months ended March 28, 2016 , and March 30, 2015 , include the effect of certain permanent differences between tax reporting purposes and financial reporting purposes and the relative impact of those differences on a small quarterly income.

Share-based Compensation

Share-based Compensation	3 Months Ended
	Mar. 28, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation	In May 2010, the Company’s Board of Directors approved the 2010 Amended Management Incentive Plan (the “ 2010 Plan ”). In May 2014, the Company’s Board of Directors adopted the 2014 Equity Incentive Plan (the “ 2014 Plan ,” and together with the 2010 Plan , the “ Incentive Plans ”). The Incentive Plans reserve 2,116,747 common shares for equity incentive awards consisting of incentive stock options, non-qualified stock options, restricted stock awards and unrestricted stock awards. Equity incentive awards may be issued from either the 2014 Plan or the 2010 Plan . Under the Incentive Plans , the Company has awarded 577,229 and 584,017 shares of restricted common stock to eligible employees as of March 28, 2016 , and December 28, 2015 , respectively. In addition, the Company has issued 1,238,551 and 1,076,555 stock options under the Incentive Plans to eligible employees as of March 28, 2016 , and December 28, 2015 , respectively. During the three months ended March 28, 2016, the Company early adopted ASU 2016-09 . As permitted under ASU 2016-09 , the Company has elected to account for forfeitures in compensation cost when they occur in order to ease the administrative burden of estimating forfeitures. See Recent Accounting Pronouncements in Note 1 — Description of Business and Basis of Presentation for additional information. Restricted common shares Information with respect to restricted stock activity is as follows: Number of Shares of Restricted Common Stock Time Vesting Performance Vesting Weighted Average Sale/Grant Date Fair Value Per Share Unvested, December 28, 2015 49,513 186,515 $ 3.11 Vested (3,017 ) — 5.48 Repurchased (3,016 ) (3,772 ) 1.42 Unvested, March 28, 2016 43,480 182,743 $ 3.00 The fair value of awards vested during the periods reported were as follows: Three Months Ended (in thousands, except per share amounts) March 28, 2016 March 30, 2015 Total fair value of shares vested $ 17 $ 17 Stock options Information with respect to stock option activity is as follows: Number of Shares Subject to Options Time Vesting Performance Weighted Weighted Aggregate Outstanding, December 28, 2015 841,956 200,481 $ 11.55 Granted 169,950 — 11.03 Forfeited (5,063 ) (2,891 ) 11.62 Outstanding, March 28, 2016 1,006,843 197,590 $ 11.48 8.6 years $ — Exercisable, March 28, 2016 500,264 — $ 11.39 8.2 years $ — Vested and expected to vest, March 28, 2016 930,856 167,952 $ 11.47 8.2 years $ — Fair value information for options granted and vested and the intrinsic value of options exercised during the periods reported are as follows: Three Months Ended (in thousands, except per share amounts) March 28, 2016 March 30, 2015 Weighted average grant date fair value per share $ 3.71 $ 5.41 Total fair value of awards granted 629 1,039 Total fair value of awards vested 329 10 Total intrinsic value of options exercised — 32 Compensation cost and valuation Total compensation costs recognized in connection with the Incentive Plans during the periods reported were as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Stock compensation expense $ 231 $ 156 Associated income tax benefits 72 52 As of March 28, 2016 , the total unrecognized stock-based compensation expense was $2.9 million , with $2.1 million associated with time vesting awards and $0.8 million associated with performance vesting awards. The remaining weighted average contractual life for unrecognized stock-based compensation expense was 3.1 years as of March 28, 2016 . The fair value of the stock option awards granted during the periods reported was estimated using the Black-Scholes model with the following weighted-average assumptions: Three Months Ended March 28, 2016 March 30, 2015 Risk free rate 1.8% 1.9% Expected volatility 30.4% 37.9% Expected term 6.3 years 6.3 years Expected dividend yield 0.0% 0.0%

Earnings per Share (EPS)

Earnings per Share (EPS)	3 Months Ended
	Mar. 28, 2016
Earnings Per Share [Abstract]
Earnings per Share (EPS)	The number of shares and earnings per share (“ EPS ”) data for all periods presented are based on the historical weighted-average shares of common stock outstanding. Basic EPS is calculated by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using income available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period, which includes unvested restricted common stock and outstanding stock options. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. The following table sets forth the computations of basic and dilutive EPS : Three Months Ended (in thousands, except per share data) March 28, 2016 March 30, 2015 Earnings: Net income $ 642 $ 2,596 Shares: Weighted average common shares outstanding 16,717 16,604 Dilutive effect of restricted equity awards 36 186 Diluted weighted average number of shares outstanding 16,753 16,792 Earnings per share: Basic earnings per share $ 0.04 $ 0.16 Diluted earnings per share $ 0.04 $ 0.15 For the three months ended March 28, 2016 , and March 30, 2015 , an aggregated total of 380,000 shares and 174,000 shares, respectively, have been excluded from the diluted EPS calculation because their effect would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 28, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Operating lease commitments The Company leases facilities and various office equipment under non-cancelable operating leases which expire through December 2025 . Lease terms for its store units are generally for five years with renewal options and generally require the Company to pay a proportionate share of real estate taxes, insurance, common area maintenance and other operating costs. The Company has entered into operating leases that it has subleased to three franchised stores. These operating leases have minimum base rent terms, contingent rent terms if individual franchised store sales exceed certain levels and have terms expiring on various dates from May 2020 to October 2020 . Lease guarantees The Company is the guarantor for operating leases of 17 franchised stores that have terms expiring on various dates from August 2016 to April 2021 . The obligations from these leases will generally continue to decrease over time as the leases expire. The applicable franchise owners continue to have primary liability for these operating leases. As of March 28, 2016 , the Company does not believe it is probable it would be required to perform under the outstanding guarantees. Legal proceedings The Company is currently subject to litigation with a group of franchise owners. In January 2014, six franchise owner groups claimed that the Company misrepresented sales volumes, made false representations to them and charged excess advertising fees, among other things. The Company engaged in mediation with these franchise owners, which is required under the terms of their franchise agreements, in order to address and resolve their claims, but was unable to reach a settlement agreement. On April 4, 2014, a total of twelve franchise owner groups, including those franchise owners that previously made the allegations described above, filed a lawsuit against the Company in the Superior Court in Clark County, Washington, making essentially the same allegations for violation of the Washington Franchise Investment Protection Act, fraud, negligent misrepresentation and breach of contract and seeking declaratory and injunctive relief, as well as monetary damages. Based on motions filed by the Company in that lawsuit, the court ruled on July 9, 2014 that certain of the plaintiffs’ claims under the anti-fraud and nondisclosure provisions of the Washington Franchise Investment Protection Act should be dismissed and that certain other claims in the case would need to be more specifically alleged. The court also ruled that the six franchise owner groups who had not mediated with the Company prior to filing the lawsuit must mediate with the Company in good faith, and that their claims be stayed until they have completed mediating with the Company in good faith. On June 18, 2014, an additional 16 franchise owner groups, represented by the same counsel as the plaintiffs described above, filed a lawsuit in the Superior Court in Clark County, Washington making essentially the same allegations as made in the lawsuit described above and seeking declaratory and injunctive relief, as well as monetary damages. The court consolidated the two lawsuits into a single case and ordered that the plaintiffs in the new lawsuit, none of whom had mediated with the Company prior to filing the lawsuit, must do so, and that their claims be stayed until they have done so. In October 2014, the Company engaged in mediation with the 22 franchise owner groups who had not previously done so. As a result of that mediation and other efforts since then, the Company has reached resolution with 13 of the franchise owner groups involved in the consolidated lawsuits, and their claims have either been dismissed or dismissal is pending. In addition, some of the claims have been dismissed without prejudice and, as a result, those plaintiffs could refile their claims if various contingencies are not met and the Company therefore provides no assurance that those dismissals will actually occur or remain in effect. In February 2015, the remaining plaintiffs in the consolidated lawsuits filed an amended complaint, removing some claims, amending some claims, adding claims and naming some of the Company’s former and current franchise sales staff as additional individual defendants. As before, the Company believes the allegations in this litigation lack merit and, for those plaintiffs with whom the Company is unable to reach resolution, the Company will continue to vigorously defend its interests, including by asserting a number of affirmative defenses and, where appropriate, counterclaims. The Company provides no assurance that it will be successful in its defense of these lawsuits; however, it does not currently expect the cost of resolving them to have a material adverse effect on its consolidated financial position, results of operations, or cash flows. The Company is also currently named as a defendant in a putative class action lawsuit filed by plaintiff John Lennartson on May 8, 2015, in the United States District Court for the Western District of Washington. The lawsuit alleges the Company failed to comply with the requirements of the Telephone Consumer Protection Act (TCPA) when it sent SMS text messages to consumers. The plaintiff in the lawsuit asks that the court certify the putative class and that statutory damages under the TCPA be awarded to plaintiff and each class member. The Company believes the plaintiff’s interpretation of the law is incorrect and it will continue to vigorously defend itself in the lawsuit, but provide no assurance that it will be successful. An adverse judgment or settlement related to this lawsuit could have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. In addition to the foregoing, the Company is subject to routine legal proceedings, claims, and litigation in the ordinary course of its business. The Company may also engage in future litigation with franchise owners to enforce the terms of franchise agreements and compliance with brand standards as determined necessary to protect the Company’s brand, the consistency of products and the customer experience. Lawsuits require significant management attention and financial resources and the outcome of any litigation is inherently uncertain. The Company does not, however, currently expect that the costs to resolve these routine matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 28, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Employee loans related to share purchases In connection with share-based compensation, the Company previously made loans to certain non-officer employees of the Company (see Note 10 — Share-based Compensation ). Loans made in connection with the issuance of the Company’s equity have been recognized in Stock subscriptions receivable as a reduction of total equity. As of March 28, 2016 , and December 28, 2015 , the Company had stock subscription receivables of $0.1 million . Related party revenue The Company was party to transactions to sell services to Project Pie, LLC (“ Project Pie ”) during the period Project Pie was a cost-method investee. Revenue from these transactions are recorded as Other revenues on the Condensed Consolidated Statements of Net Income . Related party revenue during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Related party revenue $ — $ 4

Segment Information

Segment Information	3 Months Ended
	Mar. 28, 2016
Segment Reporting [Abstract]
Segment Information	The Company has the following reportable segments: (i) Domestic Franchise; (ii) Domestic Company Stores; and (iii) International. The Domestic Franchise segment includes operations with respect to franchised stores in the United States and derives its revenues primarily from franchise and development fees and franchise royalties from franchised stores in the United States. The Domestic Company Stores segment includes operations with respect to Company-owned stores in the United States and derives its revenues from retail sales of pizza and side items to the general public. The International segment includes operations related to the Company’s operations outside the United States and derives its revenues from franchise and development fees and franchise royalties from franchised stores outside the United States. The following tables summarize information on profit or loss and assets for each of the Company’s reportable segments: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Revenues Domestic Franchise $ 12,215 $ 11,935 Domestic Company Stores 20,674 17,167 International 96 66 Total $ 32,985 $ 29,168 Segment Operating Income (Loss) Domestic Franchise $ 3,827 $ 5,927 Domestic Company Stores (92 ) 1,136 International 53 24 Corporate and unallocated (1,465 ) (1,739 ) Total $ 2,323 $ 5,348 Depreciation and amortization Domestic Franchise $ 1,463 $ 1,300 Domestic Company Stores 1,241 1,011 International 11 8 Total $ 2,715 $ 2,319 (in thousands) March 28, 2016 December 28, 2015 Total Assets Domestic Franchise $ 131,716 $ 139,705 Domestic Company Stores 45,821 45,217 International 371 438 Other (1) 89,281 90,111 Total $ 267,189 $ 275,471 (1) Other assets which are not allocated to the individual segments primarily include trade names and trademarks, unamortized deferred financing charges, and an intercompany note.

Subsequent Events (Notes)

Subsequent Events (Notes)	3 Months Ended
	Mar. 28, 2016
Subsequent Events [Abstract]
Subsequent events	Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. The Company recognizes in the Unaudited Condensed Consolidated Financial Statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing the financial statements. The Company’s Unaudited Condensed Consolidated Financial Statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date and before financial statements are issued. In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through May 4, 2016 , the date the Unaudited Condensed Consolidated Financial Statements were issued. On April 11, 2016, Papa Murphy’s Company Stores, Inc., a wholly owned subsidiary of the Company, acquired certain assets used in the operation of nine Papa Murphy’s stores in the Joplin, Missouri, and Fort Smith, Arkansas, areas from a franchise owner. The total purchase price of $2.4 million was funded through existing cash and advances on the 2014 Credit Facility .

Description of Business and B21

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 28, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “ SEC ”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States (“ GAAP ”) for complete financial statements. In the Company’s opinion, all necessary adjustments, consisting of only normal recurring adjustments, have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 28, 2015 .
Principles of consolidation	Principles of consolidation The interim unaudited condensed consolidated financial statements include the accounts of Papa Murphy’s Holdings, Inc., its subsidiaries and certain entities which the Company consolidates as variable interest entities (“ VIE s”). All significant intercompany transactions and balances have been eliminated. Throughout the interim unaudited condensed consolidated financial statements and the related notes thereto, “Papa Murphy’s” and “the Company” refer to Papa Murphy’s Holdings, Inc. and its consolidated subsidiaries.
Fiscal year	Fiscal year The Company uses a 52- or 53-week fiscal year, ending on the Monday nearest to December 31. Fiscal year 2016 is a 53-week year and 2015 was a 52-week year. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. References to 2016 and 2015 are references to fiscal years ending January 2, 2017 , and ended December 28, 2015 , respectively.
New accounting pronouncements	During the three months ended March 28, 2016, the Company early adopted ASU No. 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ ASU 2016-09 ”). The Company applied the new guidance on a modified retrospective basis through a cumulative-effect adjustment. As a result, changes have been made to the presentation of Stockholders’ Equity in the Condensed Consolidated Balance Sheets at December 28, 2015 . See Recent Accounting Pronouncements below for additional information. A summary of the changes made to the Condensed Consolidated Balance Sheets at December 28, 2015 , is included in the following table: (in thousands) As Filed Updated Additional paid-in capital $ 118,801 $ 118,842 Accumulated deficit (21,214 ) (21,255 ) Accounting Pronouncements Recently Adopted In March 2016, the FASB issued ASU 2016-09 , which simplifies several aspects of the accounting for share-based payment awards to employees, including the accounting for income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. The effective date for ASU 2016-09 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted in any annual or interim period for which financial statements have not yet been issued. All amendments in ASU 2016-09 that apply must be adopted in the same period. The Company early adopted ASU 2016-09 at the beginning of fiscal year 2016. As permitted under ASU 2016-09 , the Company has elected to account for forfeitures in compensation cost when they occur in order to ease the administrative burden of estimating forfeitures. The effect of adopting ASU 2016-09 is reflected in Stockholders’ Equity in the Condensed Consolidated Balance Sheets on a modified retrospective basis through a cumulative-effect adjustment. See Basis of Presentation above for additional information. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ ASU 2014-09 ”), a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under GAAP. The original effective date for ASU 2014-09 would have required adoption by the Company in the first quarter of fiscal 2017 with early adoption prohibited. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date , which defers the effective date of ASU 2014-09 for one year and permits early adoption in accordance with the original effective date of ASU 2014-09 . In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which is an amendment to the new revenue recognition standard on assessing whether an entity is a principal or an agent in a revenue transaction. This amendment addresses implementation issues that were discussed by the Revenue Recognition Transition Resource Group to clarify the principal versus agent assessment and lead to more consistent application. This new standard has the same effective date and transition requirements as ASU 2014-09 . The new revenue standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company has not yet selected a transition method. The Company is continuing to evaluate the impact the adoption of this standard will have on the recognition of revenue. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ ASU 2016-02 ”). This update requires that lessees recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than twelve months. ASU 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include both qualitative and quantitative information. The effective date for ASU 2016-02 is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 with earlier adoption permitted. The Company is still evaluating the impact of ASU 2016-02 on its financial position and results of operations.

Description of Business and B22

Description of Business and Basis of Presentation (Tables)	3 Months Ended
	Mar. 28, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of new accounting pronouncements	A summary of the changes made to the Condensed Consolidated Balance Sheets at December 28, 2015 , is included in the following table: (in thousands) As Filed Updated Additional paid-in capital $ 118,801 $ 118,842 Accumulated deficit (21,214 ) (21,255 )

Prepaid Expenses and Other Cu23

Prepaid Expenses and Other Current Assets (Tables)	3 Months Ended
	Mar. 28, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses and other current assets	Prepaid expenses and other current assets consist of the following: (in thousands) March 28, 2016 December 28, 2015 Prepaid media development costs $ 216 $ 352 Prepaid software and support 1,048 464 Prepaid rents 527 477 Prepaid insurance 517 602 Taxes receivable 2,101 2,872 POS software licenses for resale — 660 Assets held for sale 599 605 Advertising cooperative assets, restricted 172 26 Other 149 81 Total prepaid expenses and other current assets $ 5,329 $ 6,139
Software license revenue	POS software license revenue during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 POS software license revenue $ 657 $ 186

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 28, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	Depreciation expense during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Depreciation expense $ 1,444 $ 1,004

Intangible Assets Intangible As

Intangible Assets Intangible Assets (Tables)	3 Months Ended
	Mar. 28, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived Intangible Assets Amortization Expense	Amortization expense during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Amortization expense $ 1,271 $ 1,315

Receivables (Tables)

Receivables (Tables)	3 Months Ended
	Mar. 28, 2016
Receivables [Abstract]
Notes Receivable	Notes receivable consists of a note maturing in 2020 that is collateralized by store assets. Changes in the account balance represent amortization payments collected per the terms of the agreement.
Allowance for Doubtful Accounts	The Company’s allowance for doubtful accounts is as follows: (in thousands) March 28, 2016 December 28, 2015 Allowance for doubtful accounts $ 33 $ 31

Financing Arrangements (Tables)

Financing Arrangements (Tables)	3 Months Ended
	Mar. 28, 2016
Debt Disclosure [Abstract]
Long-term debt	Long-term debt consists of the following: (in thousands) March 28, 2016 December 28, 2015 2014 Credit Facility Term loan $ 105,879 $ 109,200 Revolving line of credit 1,000 — Notes payable 3,000 3,000 Total principal amount of long-term debt 109,879 112,200 Unamortized debt issuance costs (1,083 ) (1,163 ) Total long-term debt 108,796 111,037 Less current portion (2,279 ) (2,800 ) Total long-term debt, net of current portion $ 106,517 $ 108,237

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 28, 2016
Fair Value Disclosures [Abstract]
Fair value	The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis: March 28, 2016 December 28, 2015 (in thousands) CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE FAIR VALUE MEASUREMENTS Financial assets Notes receivable (1) $ 202 $ 205 $ 221 $ 224 Level 3 (1) The fair value of notes receivable was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread.

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	3 Months Ended
	Mar. 28, 2016
Payables and Accruals [Abstract]
Accrued and other liabilities	Accrued and other liabilities consist of the following: (in thousands) March 28, 2016 December 28, 2015 Accrued compensation and related costs $ 2,491 $ 3,699 Gift cards payable 2,419 2,902 Accrued interest and non-income taxes payable 623 855 Convention fund balance 942 626 Unearned product rebates 498 922 Advertising cooperative liabilities 260 137 Other 534 615 $ 7,767 $ 9,756

Income Taxes Income Taxes (Tabl

Income Taxes Income Taxes (Tables)	3 Months Ended
	Mar. 28, 2016
Income Tax Disclosure [Abstract]
Income tax information	Information on the Company’s income taxes for the periods reported is as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Provision for income taxes $ 460 $ 1,620 Income before income taxes 1,102 4,216 Effective income tax rate 41.7 % 38.4 %

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Mar. 28, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of restricted stock activity	Information with respect to restricted stock activity is as follows: Number of Shares of Restricted Common Stock Time Vesting Performance Vesting Weighted Average Sale/Grant Date Fair Value Per Share Unvested, December 28, 2015 49,513 186,515 $ 3.11 Vested (3,017 ) — 5.48 Repurchased (3,016 ) (3,772 ) 1.42 Unvested, March 28, 2016 43,480 182,743 $ 3.00 The fair value of awards vested during the periods reported were as follows: Three Months Ended (in thousands, except per share amounts) March 28, 2016 March 30, 2015 Total fair value of shares vested $ 17 $ 17
Schedule of stock option activity	Information with respect to stock option activity is as follows: Number of Shares Subject to Options Time Vesting Performance Weighted Weighted Aggregate Outstanding, December 28, 2015 841,956 200,481 $ 11.55 Granted 169,950 — 11.03 Forfeited (5,063 ) (2,891 ) 11.62 Outstanding, March 28, 2016 1,006,843 197,590 $ 11.48 8.6 years $ — Exercisable, March 28, 2016 500,264 — $ 11.39 8.2 years $ — Vested and expected to vest, March 28, 2016 930,856 167,952 $ 11.47 8.2 years $ —
Schedule of weighted average fair value of share-based compensation awards granted and vested, and the intrinsic value of options exercised	Fair value information for options granted and vested and the intrinsic value of options exercised during the periods reported are as follows: Three Months Ended (in thousands, except per share amounts) March 28, 2016 March 30, 2015 Weighted average grant date fair value per share $ 3.71 $ 5.41 Total fair value of awards granted 629 1,039 Total fair value of awards vested 329 10 Total intrinsic value of options exercised — 32
Schedule of employee service share-based compensation, allocation of recognized period costs	Total compensation costs recognized in connection with the Incentive Plans during the periods reported were as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Stock compensation expense $ 231 $ 156 Associated income tax benefits 72 52
Schedule of share-based payment award, stock options, valuation assumptions	The fair value of the stock option awards granted during the periods reported was estimated using the Black-Scholes model with the following weighted-average assumptions: Three Months Ended March 28, 2016 March 30, 2015 Risk free rate 1.8% 1.9% Expected volatility 30.4% 37.9% Expected term 6.3 years 6.3 years Expected dividend yield 0.0% 0.0%

Earnings per Share (EPS) (Table

Earnings per Share (EPS) (Tables)	3 Months Ended
	Mar. 28, 2016
Earnings Per Share [Abstract]
Computations of basic and dilutive earnings per share	The following table sets forth the computations of basic and dilutive EPS : Three Months Ended (in thousands, except per share data) March 28, 2016 March 30, 2015 Earnings: Net income $ 642 $ 2,596 Shares: Weighted average common shares outstanding 16,717 16,604 Dilutive effect of restricted equity awards 36 186 Diluted weighted average number of shares outstanding 16,753 16,792 Earnings per share: Basic earnings per share $ 0.04 $ 0.16 Diluted earnings per share $ 0.04 $ 0.15

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 28, 2016
Related Party Transactions [Abstract]
Schedule of related party transactions	Related party revenue during the periods reported was as follows: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Related party revenue $ — $ 4

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 28, 2016
Segment Reporting [Abstract]
Segment reporting information by segment	The following tables summarize information on profit or loss and assets for each of the Company’s reportable segments: Three Months Ended (in thousands) March 28, 2016 March 30, 2015 Revenues Domestic Franchise $ 12,215 $ 11,935 Domestic Company Stores 20,674 17,167 International 96 66 Total $ 32,985 $ 29,168 Segment Operating Income (Loss) Domestic Franchise $ 3,827 $ 5,927 Domestic Company Stores (92 ) 1,136 International 53 24 Corporate and unallocated (1,465 ) (1,739 ) Total $ 2,323 $ 5,348 Depreciation and amortization Domestic Franchise $ 1,463 $ 1,300 Domestic Company Stores 1,241 1,011 International 11 8 Total $ 2,715 $ 2,319 (in thousands) March 28, 2016 December 28, 2015 Total Assets Domestic Franchise $ 131,716 $ 139,705 Domestic Company Stores 45,821 45,217 International 371 438 Other (1) 89,281 90,111 Total $ 267,189 $ 275,471 (1) Other assets which are not allocated to the individual segments primarily include trade names and trademarks, unamortized deferred financing charges, and an intercompany note.

Description of Business and B35

Description of Business and Basis of Presentation - Description of business (Details)	Mar. 28, 2016statestore
Franchisor Disclosure [Line Items]
Number of stores	1,555
Number of states in which the Company operates | state	38
Domestic
Franchisor Disclosure [Line Items]
Number of stores	1,513
Domestic | Franchised stores
Franchisor Disclosure [Line Items]
Number of stores	1,378
Domestic | Company-owned stores
Franchisor Disclosure [Line Items]
Number of stores	135
Canada and the United Arab Emirates | Franchised stores
Franchisor Disclosure [Line Items]
Number of stores	42

Description of Business and B36

Description of Business and Basis of Presentation - Recent accounting pronouncements (Details) - USD ($) $ in Thousands	Mar. 28, 2016	Dec. 28, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Additional paid-in capital	$ 119,063	$ 118,842
Accumulated deficit	$ (20,613)	(21,255)
As filed | Adjustments for new accounting principle, early adoption
New Accounting Pronouncement, Early Adoption [Line Items]
Additional paid-in capital		118,801
Accumulated deficit		(21,214)
Updated | Adjustments for new accounting principle, early adoption
New Accounting Pronouncement, Early Adoption [Line Items]
Additional paid-in capital		118,842
Accumulated deficit		$ (21,255)

Prepaid Expenses and Other Cu37

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015	Dec. 28, 2015
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid media development costs	$ 216		$ 352
Prepaid software and support	1,048		464
Prepaid rents	527		477
Prepaid insurance	517		602
Taxes receivable	2,101		2,872
POS software licenses for resale	0		660
Assets held for sale	599		605
Advertising cooperative assets, restricted	172		26
Other	149		81
Total prepaid expenses and other current assets	5,329		$ 6,139
Revenue from External Customer [Line Items]
POS software license revenue	861	$ 182
POS Systems
Revenue from External Customer [Line Items]
POS software license revenue	$ 657	$ 186

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015	Dec. 28, 2015
Property, Plant and Equipment [Abstract]
Accumulated depreciation	$ 15,200		$ 13,800
Depreciation expense	$ 1,444	$ 1,004

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015	Dec. 28, 2015
Intangible Assets, Net
Accumulated amortization	$ 23,800		$ 23,000
Amortization expense	$ 1,271	$ 1,315

Receivables (Details)

Receivables (Details) - USD ($) $ in Thousands	Mar. 28, 2016	Dec. 28, 2015
Receivables [Abstract]
Allowance for doubtful accounts	$ 33	$ 31

Financing Arrangements - Sched

Financing Arrangements - Schedule of Long-term debt (Details) - USD ($) $ in Thousands	Mar. 28, 2016	Dec. 28, 2015
Debt Instrument [Line Items]
Principal amount of long-term debt	$ 109,879	$ 112,200
Unamortized debt issuance costs	(1,083)	(1,163)
Long-term debt	108,796	111,037
Less current portion	(2,279)	(2,800)
Total long-term debt, net of current portion	106,517	108,237
Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Principal amount of long-term debt	105,879	109,200
Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount of long-term debt	1,000	0
Notes payable
Debt Instrument [Line Items]
Principal amount of long-term debt	$ 3,000	$ 3,000

Financing Arrangements - Narrat

Financing Arrangements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 26, 2016	Mar. 28, 2016	Dec. 28, 2015
Debt Instrument [Line Items]
Long-term Debt		$ 108,796	$ 111,037
Principal amount of long-term debt		109,879	112,200
Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Principal amount of long-term debt		105,879	109,200
Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount of long-term debt		1,000	0
Notes payable
Debt Instrument [Line Items]
Principal amount of long-term debt		$ 3,000	$ 3,000
PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Interest rate during period		3.74%
Papa Murphy's Company Stores, Inc. | Notes payable
Debt Instrument [Line Items]
Long-term Debt		$ 3,000
Interest rate on notes payable		5.00%
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 132,000
Minimum term loan amortization payments		700
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 112,000
Maturity date		Aug. 28, 2019
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 20,000
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Letter of credit subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity		2,500
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Swing-line loan subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 1,000
LIBOR rate | 2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Interest rate at end of period		3.69%
Principal amount of long-term debt		$ 105,000
Base rate | 2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Interest rate at end of period		5.50%
Principal amount of long-term debt		$ 900
Base rate | 2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate at end of period		5.75%
Scenario, Forecast | 2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Minimum term loan amortization payments	$ 1,400

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands		Mar. 28, 2016	Dec. 28, 2015
Reported value measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes receivable	[1]	$ 202	$ 221
Estimate of fair value measurement | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes receivable	[1]	$ 205	$ 224
[1]	The fair value of notes receivable was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread.

Accrued and Other Liabilities44

Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 28, 2016	Dec. 28, 2015
Payables and Accruals [Abstract]
Accrued compensation and related costs	$ 2,491	$ 3,699
Gift cards payable	2,419	2,902
Accrued interest and non-income taxes payable	623	855
Convention fund balance	942	626
Unearned product rebates	498	922
Advertising cooperative liabilities	260	137
Other	534	615
Accrued and other liabilities	$ 7,767	$ 9,756

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 460	$ 1,620
Income before income taxes	$ 1,102	$ 4,216
Effective income tax rate	41.70%	38.40%

Share-based Compensation (Restr

Share-based Compensation (Restricted Common Shares and Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015	Dec. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for equity incentive awards	2,116,747
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares issued under plan	577,229		584,017
Restricted common stock, weighted average sale date fair value (in dollars per share)
Unvested, Beginning balance (usd per share)	$ 3.11
Vested (usd per share)	5.48
Repurchased (usd per share)	1.42
Unvested, Ending balance (usd per share)	$ 3
Restricted Stock Grants:
Total fair value of shares vested	$ 17	$ 17
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares issued under plan	1,238,551		1,076,555
Stock options outstanding, weighted average exercise price (in dollars per share)
Outstanding, Beginning balance (usd per share)	$ 11.55
Granted (usd per share)	11.03
Forfeited (usd per share)	11.62
Outstanding, Ending balance (usd per share)	11.48
Exercisable (usd per share)	11.39
Vested and expected to vest (usd per share)	$ 11.47
Stock Option Grants
Weighted Average Remaining Contractual Term, Outstanding	8 years 7 months
Weighted Average Remaining Contractual Term, Exercisable	8 years 2 months
Weighted Average Remaining Contractual Term, Vested and expected to vest	8 years 2 months
Aggregate Intrinsic Value, Outstanding	$ 0
Aggregate Intrinsic Value, Exercisable	0
Aggregate Intrinsic Value, Vested and expected to vest	$ 0
Weighted average grant date fair value per share	$ 3.71	$ 5.41
Total fair value of awards granted	$ 629	$ 1,039
Total fair value of awards vested	329	10
Total intrinsic value of options exercised	$ 0	$ 32
Time Vesting | Restricted Stock
Number of shares of restricted common stock, unvested [Roll Forward]
Unvested, Beginning balance (in shares)	49,513
Vested (in shares)	(3,017)
Repurchased (in shares)	(3,016)
Unvested, Ending balance (in shares)	43,480
Time Vesting | Stock Option
Number of shares of stock options, outstanding [Roll Forward]
Outstanding, Beginning balance (in shares)	841,956
Granted (in shares)	169,950
Forfeited (in shares)	(5,063)
Outstanding, Ending balance (in shares)	1,006,843
Exercisable (in shares)	500,264
Vested and expected to vest (in shares)	930,856
Performance Vesting | Restricted Stock
Number of shares of restricted common stock, unvested [Roll Forward]
Unvested, Beginning balance (in shares)	186,515
Vested (in shares)	0
Repurchased (in shares)	(3,772)
Unvested, Ending balance (in shares)	182,743
Performance Vesting | Stock Option
Number of shares of stock options, outstanding [Roll Forward]
Outstanding, Beginning balance (in shares)	200,481
Granted (in shares)	0
Forfeited (in shares)	(2,891)
Outstanding, Ending balance (in shares)	197,590
Exercisable (in shares)	0
Vested and expected to vest (in shares)	167,952

Share-based Compensation (Compe

Share-based Compensation (Compensation Cost and Valuation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 231	$ 156
Associated income tax benefits	72	$ 52
Total unrecognized stock-based compensation expense	$ 2,900
Compensation not yet recognized, period for recognition	3 years 1 month
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate	1.80%	1.90%
Expected volatility	30.40%	37.90%
Expected term	6 years 3 months	6 years 3 months
Expected dividend yield	0.00%	0.00%
Time Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense	$ 2,100
Performance Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense	$ 800

Earnings per Share (EPS) (Detai

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015
Earnings:
Net income	$ 642	$ 2,596
Shares:
Weighted average common shares outstanding	16,716,610	16,604,206
Dilutive effect of potential common stock	36,684	187,478
Diluted weighted average number of shares outstanding	16,753,294	16,791,684
Earnings per share:
Basic earnings per share	$ 0.04	$ 0.16
Diluted earnings per share	$ 0.04	$ 0.15
Antidilutive shares excluded from computation of earnings per share	380,000	174,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	Jun. 18, 2014plaintiff	Apr. 11, 2014plaintiff	Oct. 31, 2014plaintiff	Jan. 31, 2014plaintiff	Mar. 28, 2016store	Jul. 09, 2014
Loss Contingencies [Line Items]
Lease terms for store units					5 years
Number of store locations					1,555
Litigation with franchise owners
Loss Contingencies [Line Items]
Number of franchise owner groups (in plaintiff) | plaintiff	16	12	22	6
Number of lawsuits consolidated						2
Guarantor for operating leases | Franchise owner store locations
Loss Contingencies [Line Items]
Number of store locations					17
Guarantor for subleased operating leases | Franchise owner store locations
Loss Contingencies [Line Items]
Number of store locations					3
Resolution | Litigation with franchise owners
Loss Contingencies [Line Items]
Number of franchise owner groups (in plaintiff) | plaintiff			13

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015	Dec. 28, 2015
Related Party Transaction [Line Items]
Stock subscriptions receivable	$ 100		$ 100
Employee loans related to share purchases
Related Party Transaction [Line Items]
Stock subscriptions receivable	100
Receivable From Officers, Directors And Employees For Issuance Of Capital Stock			$ 100
Project Pie, LLC | Lease and Other Income
Related Party Transaction [Line Items]
Revenue from related parties	$ 0	$ 4

Segment Information - Profit o

Segment Information - Profit or Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2016	Mar. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 32,985	$ 29,168
Segment Operating Income (Loss)	2,323	5,348
Depreciation and amortization	2,715	2,319
Operating Segments
Segment Reporting Information [Line Items]
Revenues	32,985	29,168
Segment Operating Income (Loss)	2,323	5,348
Operating Segments | Domestic Franchise
Segment Reporting Information [Line Items]
Revenues	12,215	11,935
Segment Operating Income (Loss)	3,827	5,927
Depreciation and amortization	1,463	1,300
Operating Segments | Domestic Company Stores
Segment Reporting Information [Line Items]
Revenues	20,674	17,167
Segment Operating Income (Loss)	(92)	1,136
Depreciation and amortization	1,241	1,011
Operating Segments | International
Segment Reporting Information [Line Items]
Revenues	96	66
Segment Operating Income (Loss)	53	24
Depreciation and amortization	11	8
Operating Segments | Corporate and unallocated
Segment Reporting Information [Line Items]
Segment Operating Income (Loss)	$ (1,465)	$ (1,739)

Segment Information - Assets (

Segment Information - Assets (Details) - USD ($) $ in Thousands		Mar. 28, 2016	Dec. 28, 2015
Segment Reporting Information [Line Items]
Total Assets		$ 267,189	$ 275,471
Operating Segments
Segment Reporting Information [Line Items]
Total Assets		267,189	275,471
Operating Segments | Domestic Franchise
Segment Reporting Information [Line Items]
Total Assets		131,716	139,705
Operating Segments | Domestic Company Stores
Segment Reporting Information [Line Items]
Total Assets		45,821	45,217
Operating Segments | International
Segment Reporting Information [Line Items]
Total Assets		371	438
Operating Segments | Other
Segment Reporting Information [Line Items]
Total Assets	[1]	$ 89,281	$ 90,111
[1]	Other assets which are not allocated to the individual segments primarily include trade names and trademarks, unamortized deferred financing charges, and an intercompany note.

Subsequent Events (Details)

Subsequent Events (Details) - Papa Murphy's Company Stores, Inc. - Series of individually immaterial business acquisitions - Subsequent event $ in Millions	Apr. 11, 2016USD ($)store
Subsequent Event [Line Items]
Stores acquired | store	9
Total purchase price | $	$ 2.4