Canadian restaurant operator MTY Food Group (TSE:MTY) has raised its quarterly dividend by 12%.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
The Montreal-based company says it will now pay a quarterly dividend of C$0.37 a share, up from C$0.33 previously. The increase pushes the dividend yield on MTY stock to 3.7%. The new dividend is payable on Feb. 13 to shareholders of record as of Feb. 3.
MTY Food Group operates more than 80 restaurant brands through a franchise model. It mostly runs restaurants found in food courts at shopping malls. Banners include Thai Express, Manchu Wok, and Pizza Delight. It also owns high-end restaurants such as Baton Rouge and Van Houtte coffee.
MTY Food Group’s Cash Flow
In a statement, MTY Food Group CEO Eric Lefebvre said the increased dividend underscores the company’s confidence in its ability to generate sustainable cash flow and deliver long-term value to shareholders.
The dividend hike also comes after MTY Food Group announced late last year that it has initiated a review of strategic alternatives, including the possible sale of all or part of its business. A potential sale is being considered with MTY stock down 20% in the last 12 months.
Is MTY Stock a Buy?
The stock of MTY Food Group has a consensus Hold rating among two Wall Street analysts. That rating is based on two Hold recommendations issued in the last three months. The average MTY price target of C$42.36 implies 3.28% upside from current levels.
