MTY Food Group Inc

Latest Results (06.02.2026):

MTY Food Group Inc. reported results for the third quarter of fiscal 2025 (quarter ended August 31, 2025). Revenue rose modestly while profitability mixed: normalized adjusted EBITDA increased slightly, but net income fell year‑over‑year; the company announced a quarterly dividend and reported positive net unit growth and ongoing ERP rollout activity.

Key financials

Q3‑2025 revenue was $297.0 million (+1% YoY). Net income attributable to owners was $27.9 million, or $1.22 per diluted share, down from $34.9 million ($1.46) in Q3‑2024.

EBITDA and segment profit

Normalized adjusted EBITDA rose to $74.0 million (+3% YoY). Segment profit was $73.2 million (+2%). Management notes the EBITDA uplift included a $5.8 million U.S. Employee Retention Credit; excluding that the underlying EBITDA was modestly lower YoY.

Cash flow and liquidity

Cash flows from operating activities fell to $39.0 million (Q3‑24: $66.4M), largely due to timing of accounts receivable tied to SAP implementation and higher taxes. Free cash flow net of lease payments was $25.8 million for the quarter; cash on hand was $37.1 million and long‑term debt totaled $638.9 million.

Network and sales trends

MTY ended Q3‑2025 with 7,061 locations (net +15 openings). System sales were $1.455 billion (small YoY decline) and same‑store sales decreased 1.6% (Canada −0.3%, U.S. −2.5%, International +0.8%). Digital sales rose 1% to $273.4 million.

One‑time and non‑recurring items

Net income was affected by $6.2 million of impairment charges on intangible assets across several brands. The quarter also reflected SAP project costs and the $5.8 million ERC benefit that partially offset other pressures.

Capital allocation and balance‑sheet actions

The company repaid $30.4 million of long‑term debt in the quarter (net repayments $65.6M since Q3‑24), paid $7.5 million in dividends, and made no share repurchases. Revolving credit facility usage included CAD$253M and US$281M drawn at quarter‑end.

Outlook and operational notes

Management expects stable normalized adjusted EBITDA margins, continued improvement in unit growth, and stronger free cash flow for 2025 supported by lower capex. The ERP/SAP rollout in Canada is complete, U.S. rollout is underway, and SAP‑related invoicing timing affected short‑term cash collection.