MTY Food Group Inc

Latest Results (26.07.2026):

MTY Food Group Inc.'s first quarter of fiscal 2026 (ended March 1, 2026) delivered stable operating profitability but mixed cash and revenue dynamics: revenue fell 6% to $267.8M, normalized adjusted EBITDA held essentially flat at $60.1M, and net income rose sharply to $36.9M ($1.62 diluted) largely due to a foreign-exchange revaluation gain; system sales were $1.29B while same-store sales declined 2.5%. The Board also declared a quarterly dividend of $0.37 per share.

Revenue and top-line

Company revenue decreased to $267.8 million in Q1 2026 (down 6.0% YoY), driven mainly by lower corporate-store revenue in the US; system sales were $1.29 billion and same-store sales fell 2.5% (Canada -0.8%, US -3.6%, International -1.3%).

Profitability

Adjusted EBITDA/segment profit remained resilient: adjusted EBITDA (segment profit) was $59.8M and normalized adjusted EBITDA was $60.1M (flat vs Q1-25). Net income attributable to owners increased to $36.9M ($1.62 per diluted share) versus $1.7M ($0.07) in Q1-25, primarily reflecting a foreign-exchange gain from revaluation of US-dollar intercompany debt and a $5.5M Employee Retention Credit.

Cash flow and leverage

Cash flows from operations fell to $40.9M (Q1 2025: $64.6M). Free cash flow net of lease payments was $29.0M ($1.27 per diluted share) versus $49.3M prior year. MTY held $56.0M cash and reported long-term debt of $605.1M; the company repaid $17.7M of long-term debt in the quarter.

Digital and channel trends

Digital sales remained stable at $292.5M (flat YoY); excluding FX effects, Canada showed strong digital growth (+13%) while US digital sales were steady. The company noted Canada was more resilient overall than US and International markets.

Network activity

MTY operated 7,034 locations at quarter-end (6,786 franchised/operators, 248 corporate). During Q1 2026 it opened 52 locations and closed 90 (including an 8-store reduction after ending the TCBY master franchise agreement).

Segment details

Franchise revenue decreased modestly (down 2.4%) with normalized adjusted EBITDA of $43.2M. Corporate segment revenue declined 13% to $109.7M but normalized adjusted EBITDA improved to $13.2M (margin ~12%), helped by the $5.5M Employee Retention Credit. Food processing, distribution and retail revenue grew 7% to $40.8M.

Capital return and corporate actions

MTY declared a quarterly dividend of $0.37 per common share (payable May 15, 2026). The Board is pursuing a strategic review with a financial advisor to evaluate alternatives to enhance shareholder value; the process remains ongoing.