MTY Food Group Inc

MTY

Equity

ISIN null / Valor 1639382

Toronto Stock Exchange (2025-12-29)

CAD 37.90-0.84%

MTY Food Group Inc
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About company

MTY Food Group Inc. is a prominent player in the quick-service and casual dining restaurant industry, with a history spanning over four decades. The company is known for its strategic approach to growth, which includes the acquisition of diverse restaurant brands and the formation of strategic alliances. This strategy has enabled MTY to expand its portfolio and enhance its market presence. MTY Food Group operates a wide array of restaurant concepts, catering to various consumer preferences and dining experiences. The company's focus on innovation and strategic expansion has solidified its position as a significant entity in the food service sector.

Summarized from source with an LLMView SourceSector: Technology

Top-line and system sales

Company revenue for Q3-2025 was $297.0 million (up ~1% YoY). System sales were essentially steady at $1.455 billion for the quarter. Same-store sales declined 1.6% overall (Canada -0.3%, US -2.5%, International +0.8%).

Profit and EPS (GAAP)

Net income attributable to owners fell to $27.9 million in Q3-2025 (down from $34.9M in Q3-2024), or $1.22 per diluted share versus $1.46 last year. The decline was driven in part by $6.2 million of impairment losses on intangibles.

Adjusted performance (non-GAAP)

Normalized adjusted EBITDA increased ~3% to $74.0 million in the quarter (Q3-2024: $71.9M). Adjusted earnings per share was unchanged at $1.19 (non-GAAP).

Cash flow and liquidity

Cash flows from operations were $39.0 million in Q3-2025 (vs. $66.4M in Q3-2024) largely due to timing of receivables and higher taxes; free cash flow net of lease payments was $25.8 million (Q3-2024: $49.3M). At Aug 31, 2025 cash on hand was $37.1 million and long-term debt totaled $638.9 million. The Company repaid $30.4 million of long-term debt in the quarter.

Network and unit growth

MTY ended the quarter with 7,061 locations (6,805 franchised/operators; 256 corporate). Q3-2025 saw 96 openings and 81 closures for net +15 locations (vs. net -41 in Q3-2024).

Segment highlights

Franchise segment revenue down ~2% with normalized adjusted EBITDA of $56.0M (down 2%). Corporate segment revenue down ~2% but normalized adjusted EBITDA rose to $13.1M (benefiting from a $5.8M U.S. Employee Retention Credit). Food processing, distribution & retail revenue grew 18% to $47.6M while normalized adjusted EBITDA declined to $4.9M due to higher food costs.

One-time / project items

Q3 included impairment charges on certain intangible assets and SAP implementation costs; the quarter also benefited from a $5.8M Employee Retention Credit that materially supported normalized adjusted EBITDA (excluding ERC, normalized EBITDA would have modestly declined).

Dividend and outlook

MTY declared a quarterly dividend of $0.33 per share payable November 14, 2025 (record date Nov 4). Management flagged sequential banner improvements, a strong pipeline for openings, ongoing ERP rollout, and continued focus on margin and free cash flow improvement amid macro uncertainties (including potential U.S. policy impacts on SBA/SNAP timing).

Summarized from source with an LLMView Source

Key figures

-18.4%1Y

-33.2%3Y

-31.3%5Y

Performance

36.1%1Y

30.5%3Y

32.3%5Y

Volatility