MTY Food Group (TSE:MTY) Announces Earnings Results

MTY Food Group (TSE:MTY) posted its quarterly earnings data on Friday. The company reported C$1.26 earnings per share (EPS) for the quarter, FiscalAI reports. MTY Food Group had a return on equity of 13.22% and a net margin of 9.78%.The company had revenue of C$277.73 million for the quarter.

Here are the key takeaways from MTY Food Group’s conference call:

• U.S. same-store sales declined 2.7% in Q3 amid cautious and volatile consumers, while Canada improved sequentially to roughly flat; traffic remained pressured even as average basket sizes increased.
• Normalized adjusted EBITDA fell to CAD 60.8 million, down CAD 13.2 million, primarily because of weaker Corporate Store profitability, the absence of CAD 4.6 million in prior-year employee retention credits, and CAD 0.5 million in lease-exit costs. Food Processing, Distribution, and Retail revenue also dropped 12.6% to CAD 41.6 million.
• Management is accelerating its shift toward an asset-light franchising model, with 75 underperforming Corporate Stores now targeted for closure; 50 had already closed by quarter-end, and the company expects benefits to begin next quarter and build into 2027.
• The strategic review concluded that operating independently offers the best value-creation path. MTY plans to raise its quarterly dividend to CAD 0.50, restore its normal-course issuer bid, and is likely to pursue a substantial issuer bid while maintaining leverage flexibility up to approximately 3.0x EBITDA.
• Management reported strong development demand, with 27 delayed store openings expected to move into Q4 and an anticipated strong 2027 pipeline; digital sales rose 0.5% to CAD 279.2 million and represented 19.8% of total sales.

MTY Food Group Price Performance

Shares of MTY stock traded up C$0.59 during trading on Friday, hitting C$30.84. The company had a trading volume of 170,769 shares, compared to its average volume of 86,456. The firm has a market capitalization of C$704.42 million, a P/E ratio of 6.27, a price-to-earnings-growth ratio of 0.75 and a beta of 0.98. MTY Food Group has a one year low of C$28.12 and a one year high of C$45.90. The company has a debt-to-equity ratio of 123.64, a quick ratio of 0.56 and a current ratio of 0.73. The stock’s 50-day moving average price is C$33.55 and its 200 day moving average price is C$36.46.

MTY Food Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, August 14th were given a $0.37 dividend. This represents a $1.48 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date of this dividend was Tuesday, August 4th. MTY Food Group’s payout ratio is presently 28.46%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Royal Bank Of Canada reduced their price objective on shares of MTY Food Group from C$46.00 to C$41.00 and set a “sector perform” rating for the company in a report on Monday, July 13th. National Bank Financial reduced their price target on shares of MTY Food Group from C$43.00 to C$40.00 and set an “outperform” rating on the stock in a research report on Tuesday, September 15th. TD set a C$38.00 price objective on MTY Food Group and gave the company a “hold” rating in a research report on Thursday. Acumen Capital reduced their target price on shares of MTY Food Group from C$50.00 to C$48.00 and set a “buy” rating on the stock in a research note on Monday, July 13th. Finally, Scotia dropped their price objective on MTY Food Group from C$45.00 to C$40.00 and set a “sector perform” rating for the company in a report on Monday, July 13th. Two investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of C$42.12.

MTY Food Group Company Profile

MTY Group franchises and operates quick-service, fast casual and casual dining restaurants over 80 different banners in Canada, the US and Internationally. Based in Montreal, MTY is a family whose heart beats to the rhythm of its brands, the very soul of its multi-branded strategy. For over 45 years, it has been increasing its presence by delivering new concepts of restaurants, making acquisitions, and forging strategic alliances, which have allowed it to reach new heights year after year. By combining new trends with operational know-how, the brands forming the MTY Group now touch the lives of millions of people every year.