MTY Food Group (TSE:MTY) Releases Quarterly Earnings Results

MTY Food Group (TSE:MTY) issued its quarterly earnings results on Friday. The company reported C$1.26 earnings per share for the quarter, FiscalAI reports. The business had revenue of C$277.73 million during the quarter. MTY Food Group had a return on equity of 13.22% and a net margin of 9.78%.

Here are the key takeaways from MTY Food Group’s conference call:

• U.S. same-store sales declined 2.7% in Q3 amid cautious and volatile consumers, while Canada improved sequentially to roughly flat; traffic remained pressured even as average basket sizes increased.
• Normalized adjusted EBITDA fell to CAD 60.8 million, down CAD 13.2 million, primarily because of weaker Corporate Store profitability, the absence of CAD 4.6 million in prior-year employee retention credits, and CAD 0.5 million in lease-exit costs. Food Processing, Distribution, and Retail revenue also dropped 12.6% to CAD 41.6 million.
• Management is accelerating its shift toward an asset-light franchising model, with 75 underperforming Corporate Stores now targeted for closure; 50 had already closed by quarter-end, and the company expects benefits to begin next quarter and build into 2027.
• The strategic review concluded that operating independently offers the best value-creation path. MTY plans to raise its quarterly dividend to CAD 0.50, restore its normal-course issuer bid, and is likely to pursue a substantial issuer bid while maintaining leverage flexibility up to approximately 3.0x EBITDA.
• Management reported strong development demand, with 27 delayed store openings expected to move into Q4 and an anticipated strong 2027 pipeline; digital sales rose 0.5% to CAD 279.2 million and represented 19.8% of total sales.

MTY Food Group Stock Performance

Shares of TSE MTY opened at C$31.15 on Friday. The company has a quick ratio of 0.56, a current ratio of 0.73 and a debt-to-equity ratio of 123.64. MTY Food Group has a 52-week low of C$28.12 and a 52-week high of C$45.90. The stock has a market capitalization of C$711.50 million, a price-to-earnings ratio of 6.33, a PEG ratio of 0.75 and a beta of 0.98. The stock’s fifty day simple moving average is C$33.49 and its 200 day simple moving average is C$36.43.

MTY Food Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Stockholders of record on Friday, August 14th were given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date was Tuesday, August 4th. MTY Food Group’s dividend payout ratio is 28.46%.

Analyst Upgrades and Downgrades

MTY has been the topic of a number of recent analyst reports. TD Securities raised MTY Food Group to a “hold” rating in a report on Monday, July 13th. Scotia decreased their price target on MTY Food Group from C$45.00 to C$40.00 and set a “sector perform” rating for the company in a research note on Monday, July 13th. Royal Bank Of Canada cut their price objective on shares of MTY Food Group from C$46.00 to C$41.00 and set a “sector perform” rating on the stock in a research note on Monday, July 13th. Acumen Capital lowered their target price on shares of MTY Food Group from C$50.00 to C$48.00 and set a “buy” rating on the stock in a research note on Monday, July 13th. Finally, Raymond James Financial reduced their price target on shares of MTY Food Group from C$45.00 to C$40.00 and set a “market perform” rating for the company in a research note on Monday, July 13th. Two equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of C$42.12.

Trending Headlines about MTY Food Group

Here are the key news stories impacting MTY Food Group this week:

• Positive Sentiment: MTY ended its strategic review and announced a 35% dividend increase, signaling confidence in cash generation and returning more capital to shareholders. MTY Reports Third Quarter Results for Fiscal 2026
• Positive Sentiment: The company also plans to buy back shares. Repurchases could support earnings per share and provide demand for the stock, particularly at its current valuation of roughly 6.3 times earnings. MTY Food Group to Buy Back Shares and Raise Dividend
• Positive Sentiment: Adjusted third-quarter EPS exceeded analyst expectations, suggesting cost control and operating performance were better than the headline profit decline indicates. MTY Group Raises Dividend as Adjusted EPS Beats Estimates
• Neutral Sentiment: TD kept a “hold” rating but set a C$38.00 price target, implying substantial potential upside from the referenced C$31.15 price. The target indicates valuation support, although the hold rating reflects uncertainty about the near-term outlook. MTY Food Group Price Target Set at C$38 by TD
• Negative Sentiment: Third-quarter profit retreated as cautious consumers pressured restaurant demand. The decline raises concerns about traffic, same-store sales and the pace of recovery in MTY’s consumer-facing businesses. MTY Food Group Third-Quarter Profit Falls on Cautious Consumers
• Negative Sentiment: Reported quarterly results included C$1.26 EPS and C$277.73 million in revenue, but the lower profitability and MTY’s relatively high leverage and below-1 current and quick ratios may limit investor enthusiasm. MTY Food Group Profit Retreats in Q3

MTY Food Group Company Profile

MTY Group franchises and operates quick-service, fast casual and casual dining restaurants over 80 different banners in Canada, the US and Internationally. Based in Montreal, MTY is a family whose heart beats to the rhythm of its brands, the very soul of its multi-branded strategy. For over 45 years, it has been increasing its presence by delivering new concepts of restaurants, making acquisitions, and forging strategic alliances, which have allowed it to reach new heights year after year. By combining new trends with operational know-how, the brands forming the MTY Group now touch the lives of millions of people every year.