MTY Food Group Inc
TSX:MTY
MTY Food Group Inc
MTY Food Group, Inc. engages in the franchise and operation of causal dining restaurants and sale of retail products under a multitude of banners. The company is headquartered in Saint-Laurent, Quebec and currently employs 1,978 full-time employees. The firm's activities consist of franchising and operating corporate-owned locations as well as the sale of retail products under a multitude of banners. The firm also operates a distribution center and a food-processing plant, both of which are located in the province of Quebec. The firm operates under banners include Tiki-Ming, Sukiyaki, La Cremiere, Panini Pizza Pasta, Villa Madina, Cultures, Thai Express, Vanellis, Kim Chi, TCBY, Sushi Shop, Koya Japan, Vie & Nam, Tandori, O’Burger, Tutti Frutti, Taco Time, Country Style, Buns Master, Valentine, Jugo Juice, Mr. Sub, Koryo Korean Barbeque, Mr. Souvlaki, Sushi Go, and others. The company has approximately 6,848 locations in operation, of which 6,701 were franchised or under operator agreements, 23 were operated through the joint venture and the remaining 124 locations were operated by the Company.
MTY Food Group, Inc. engages in the franchise and operation of causal dining restaurants and sale of retail products under a multitude of banners. The company is headquartered in Saint-Laurent, Quebec and currently employs 1,978 full-time employees. The firm's activities consist of franchising and operating corporate-owned locations as well as the sale of retail products under a multitude of banners. The firm also operates a distribution center and a food-processing plant, both of which are located in the province of Quebec. The firm operates under banners include Tiki-Ming, Sukiyaki, La Cremiere, Panini Pizza Pasta, Villa Madina, Cultures, Thai Express, Vanellis, Kim Chi, TCBY, Sushi Shop, Koya Japan, Vie & Nam, Tandori, O’Burger, Tutti Frutti, Taco Time, Country Style, Buns Master, Valentine, Jugo Juice, Mr. Sub, Koryo Korean Barbeque, Mr. Souvlaki, Sushi Go, and others. The company has approximately 6,848 locations in operation, of which 6,701 were franchised or under operator agreements, 23 were operated through the joint venture and the remaining 124 locations were operated by the Company.
EBITDA Growth: Normalized adjusted EBITDA was $74 million, up 3% year-over-year, aided by a $5.8 million employee retention credit; without it, EBITDA would have declined slightly.
Store Expansion: MTY achieved a net gain of 15 locations this quarter, with a strong pipeline and high franchisee engagement expected to sustain growth for at least the next 18 months.
Sales Trends: System sales were stable at $1.5 billion. Same-store sales missed targets, with U.S. showing sequential improvement while Canadian malls saw a 2.5% decline.
Papa Murphy's: Underperformance continues, but management is optimistic due to loyalty program relaunch and new marketing initiatives. Store closures will likely decrease going forward.
Cash Flow & Debt: Operating cash flow dropped to $39 million from $66.4 million YoY due to temporary working capital tied to SAP rollout. Net debt stands at $602 million with debt/EBITDA at 2.3x.
Retail Segment: Retail revenue grew 19% mainly due to a shift to vendor-on-record and strong promotional activity, though margin declined due to the model change.
Digital Sales: Digital sales grew 1% and now represent 19% of total sales; growth would have been 3% excluding Papa Murphy's and FX impact.
