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.
Store Network: MTY reported a net addition of 19 locations in Q4, leading to positive annual net unit growth for the first time since 2013.
Same-Store Sales: Same-store sales declined by 1.7% in Q4, with Canada flat and the U.S. down 2.8%, reflecting ongoing macroeconomic headwinds.
Profitability: Normalized adjusted EBITDA rose 48% year-over-year to $87.7 million, largely due to a one-time $29.5 million gift card breakage income.
Free Cash Flow & Leverage: Free cash flow net of lease repayments was $37.6 million, up 38% from last year, and the company’s debt-to-EBITDA is now about 2x.
Dividend: The quarterly dividend was raised by 12% to $0.37 per share.
Strategic Review: MTY’s board has initiated a strategic review process, but management provided no specifics on timing or possible outcomes.
Guidance: CapEx is expected to remain limited in 2026, with focus on deleveraging and optionality for future investments.
