MTY Food Group Inc

Latest Results (23.03.2026):

MTY Food Group Inc reported third-quarter fiscal 2025 (Q3-2025) results: revenue of $297.0 million (up ~1% year-over-year) and normalized adjusted EBITDA of $74.0 million (up 3%). Net income attributable to owners declined to $27.9 million, or $1.22 per diluted share, driven partly by $6.2 million of impairment charges. The company ended the quarter with 7,061 locations, declared a quarterly dividend of $0.33 per share, and reported $39.0 million of operating cash flow for the quarter.

Key financials

Revenue: $297.0M (+1% y/y). Normalized adjusted EBITDA: $74.0M (+3% y/y). Net income attributable to owners: $27.9M (Q3-2024: $34.9M). Diluted EPS: $1.22 (Q3-2024: $1.46). Adjusted EPS: $1.19 (unchanged vs Q3-2024).

Profitability and segments

Segment profit totaled $73.2M (+2%). Franchise segment normalized adjusted EBITDA fell 2% to $56.0M. Corporate segment normalized adjusted EBITDA rose to $13.1M (boosted by a $5.8M Employee Retention Credit), with margin improving to ~11% from 8%. Food processing, distribution & retail revenue grew 18% to $47.6M, but its normalized adjusted EBITDA declined to $4.9M due to higher food costs.

Cash flow and balance sheet

Cash flows from operations: $39.0M (Q3-2024: $66.4M), largely affected by timing of receivables tied to SAP implementation and higher taxes paid. Free cash flows net of lease payments: $25.8M (Q3-2024: $49.3M); free cash flow per diluted share: $1.13. Cash on hand: $37.1M. Long-term debt: $638.9M; company repaid $30.4M in the quarter and $65.6M net since Q3-2024. Revolving facility availability remains in place (authorized $900M; draws noted at quarter-end).

Network and sales trends

System sales about $1.46B for the quarter (modest y/y decline). Net store openings: +15 in Q3-2025 (96 openings, 81 closures), ending with 7,061 locations (58% US, 35% Canada, 7% International). Same-store sales declined 1.6% (improved sequentially from -1.9% in Q2-25); Canada -0.3%, US -2.5%, International +0.8%. Digital sales rose 1% to $273.4M.

One-time items and non-GAAP drivers

Normalized adjusted EBITDA benefited from a $5.8M U.S. Employee Retention Credit; excluding that, normalized adjusted EBITDA would have modestly declined. Net income was reduced by $6.2M in impairment charges on intangible assets across several brands. SAP implementation-related timing impacted working capital and cash flows.

Capital allocation and shareholder return

Declared quarterly dividend of $0.33 per share payable November 14, 2025 (record date Nov 4, 2025). No share repurchases in the quarter. Management continues debt repayment and expects lower capex to support free cash flow generation in 2025.

Outlook and risks

Management reports sequential banner improvements (notably Cold Stone Creamery and Wetzel’s Pretzels) and a strong pipeline for new locations, while cautioning that macroeconomic and policy risks (e.g., prolonged U.S. government shutdown affecting SBA funding, SNAP benefit disruptions, tariffs) could weigh on openings and sales. Management expects stable normalized adjusted EBITDA margins across segments and continued focus on unit growth, efficiencies and ERP rollout execution. Summarized from source with an LLMView Source