MTY Food Group Inc

Latest Results (05.05.2026):

MTY Food Group Inc — fourth quarter of fiscal 2025 (Q4‑2025): MTY reported materially stronger reported results in Q4‑2025 driven largely by a one‑time catch‑up of gift card breakage income. GAAP net income attributable to owners rose to $32.1 million ($1.40 diluted EPS) versus a loss of $55.3 million in Q4‑2024, while normalized adjusted EBITDA improved to $87.7 million. System sales were modestly higher on a reported basis but same‑store sales declined. The company generated healthy free cash flow, reduced long‑term debt, raised the quarterly dividend and has an ongoing strategic review.

Key financials

Q4‑2025 revenue: $305.4M (+7% YoY). Net income attributable to owners: $32.1M vs $(55.3)M in Q4‑2024; basic & diluted EPS: $1.40. Adjusted EBITDA (segment profit) was $87.3M; normalized adjusted EBITDA: $87.7M (+48% YoY). Free cash flows net of lease payments: $37.7M ($1.65 per diluted share), up 38% YoY. System sales for the quarter: $1.4148B; same‑store sales: -1.7%.

One‑time items driving results

Management attributes much of the quarter’s improvement to a one‑time catch‑up of gift card breakage income (US franchising benefit of ~$29.5M). Lower impairment charges in 2025 versus 2024 also materially supported the swing to positive net income.

Revenue and margin dynamics

Reported revenue growth (+7%) was supported by franchise growth and the processing/distribution/retail segment. Normalized adjusted EBITDA margin for the quarter was 29% of revenue. Excluding the 53rd week and FX, system sales decreased ~2% for the quarter; Canada was roughly stable, the US showed modest pressure.

Cash flow and leverage

Operating cash flow: $46.2M in Q4. MTY repaid $13.8M of long‑term debt in the quarter and reports net long‑term debt repayments of $69.9M since Q4‑2024. Cash on hand: $52.0M; long‑term debt: $632.2M. Revolving facility authorized at $900M with CAD$250M and US$275M drawn at quarter‑end.

Store growth and sales mix

Net openings in Q4‑2025: +19 locations (85 opened, 66 closed); year‑end network: 7,080 locations (6,831 franchised/operator; 249 corporate). Digital sales were $288.8M (21% of total sales), up 1% YoY; Canadian digital up ~16%, US digital down ~4% (excluding one underperforming brand, US digital +6%).

Segment performance

Franchise segment: revenue up ~30% YoY largely from gift card breakage; normalized adjusted EBITDA for franchise: $75.1M. Corporate segment: revenue down 9% with normalized adjusted EBITDA of $7.9M (7% margin). Food processing/distribution/retail: revenue +20% with normalized adjusted EBITDA $4.7M (11% margin).

Dividend, strategic review and corporate actions

MTY declared a quarterly dividend of $0.37 per share (12% increase), paid Feb 13, 2026. On Nov 17, 2025 the Board initiated a strategic review with a financial advisor; the process is ongoing with no timeline or assurance of a transaction.

Outlook and management commentary

Management expects stability in normalized adjusted EBITDA margins across segments, continued strong free cash flow into 2026 (supported by lower capex), and an improving pace of new openings over coming quarters (seasonality excluded). They note macroeconomic uncertainty and limited tariff exposure due to domestic sourcing.