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MTY Food Group Posts Higher Profit but Softer Sales in Q1 2026

Story Highlights
  • MTY’s Q1 2026 profit surged despite lower revenue, weaker cash flow and a 2.5% drop in same-store sales.
  • Normalized EBITDA was stable as MTY trimmed its network, raised adjusted EPS and affirmed growth plans with a dividend.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
MTY Food Group Posts Higher Profit but Softer Sales in Q1 2026

Meet Samuel – Your Personal Investing Prophet

An update from MTY Food Group ( (TSE:MTY) ) is now available.

MTY Food Group reported first-quarter fiscal 2026 results showing modest segment profit growth and sharply higher net income, even as revenue, cash from operations and free cash flow declined amid weaker consumer sentiment. Same-store sales fell 2.5 per cent and system sales slipped to $1.3 billion, with U.S. and international markets underperforming relatively resilient Canadian operations.

Despite the top-line softness, normalized adjusted EBITDA held essentially flat and adjusted earnings per share rose 13 per cent, underscoring the company’s cost discipline and asset-light franchising model. MTY ended the quarter with 7,034 locations after more closures than openings and the termination of a TCBY master franchise, but management highlighted a robust 2026 pipeline and ongoing expansion by experienced franchisees, while declaring a 37-cent quarterly dividend.

The most recent analyst rating on (TSE:MTY) stock is a Hold with a C$48.00 price target. To see the full list of analyst forecasts on MTY Food Group stock, see the TSE:MTY Stock Forecast page.

Spark’s Take on MTY Stock

According to Spark, TipRanks’ AI Analyst, MTY is a Neutral.

The score is driven by attractive valuation (low P/E and solid dividend yield) and strong cash generation, offset by leverage and earnings volatility. Technical signals are modestly bearish and the earnings call flagged underlying same-store sales pressure and a meaningful one-time boost to Q4 results.

To see Spark’s full report on MTY stock, click here.

More about MTY Food Group

MTY Food Group Inc., based in Montreal and listed on the TSX, is one of the largest global franchisors and operators of multiple restaurant concepts. The company runs more than 7,000 locations, primarily franchised, with a network concentrated in the U.S. and Canada and additional international presence, leveraging an asset-light model focused on branded quick-service and fast-casual chains.

Average Trading Volume: 94,356

Technical Sentiment Signal: Hold

Current Market Cap: C$923M

For an in-depth examination of MTY stock, go to TipRanks’ Overview page.

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