MTY Food Group (MTYFF) AI Stock Analysis

Compare

32 Followers

Top Page

MTY Food Group (MTYFF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$691.72M

Dividend Yield2.89%

Average Volume (3M)1.75K

Price to Earnings (P/E)130.1

Beta (1Y)0.83

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees7,632

SectorConsumer Cyclical

Sector Strength62

IndustryRestaurants

Share Statistics

EPS (TTM)0.63

Shares Outstanding22,847,860

10 Day Avg. Volume1,777

30 Day Avg. Volume1,748

Financial Highlights & Ratios

PEG Ratio-1.63

Price to Book (P/B)1.14

Price to Sales (P/S)0.00

P/FCF Ratio4.99

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$36.91

Price Target Upside22.06% Upside

Rating ConsensusHold

Number of Analyst Covering2

MTY Food Group Business Overview & Revenue Model

Company DescriptionMTY Food Group Inc. franchises and operates quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and internationally. The company also sells retail products under a multitude of banners. As of November 30, 2021, the company had 6,719 locations comprising 6,603 franchised, 23 joint ventures, and 93 corporate locations. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in July 2003. MTY Food Group Inc. was founded in 1979 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

MTY Food Group Earnings Call Summary

Earnings Call Date:Apr 11, 2025

(Q1-2025)

% Change Since: 8.86%|

Next Earnings Date:Jul 10, 2025

Earnings Call Sentiment Neutral

The earnings call highlights MTY's resilience and strong cash flow generation despite weather and economic challenges. Digital sales and a strong new store pipeline are positive indicators, but net store closures and foreign exchange impacts on earnings present challenges.

Q1-2025 Updates

Positive Updates

Resilient Performance in Challenging Conditions

Despite extreme weather disruptions, same-store sales remained largely stable, demonstrating resilience against macroeconomic headwinds.

Strong Digital Sales Growth

Digital sales increased by 7% in the first quarter, representing 22% of total sales, reflecting ongoing investments and brand-level initiatives.

Robust Cash Flow Generation

Cash flows from operating activities were $58.5 million, up 9% year-over-year, and free cash flows net of lease payments increased by 18%.

Strong New Store Pipeline

MTY opened 70 locations with over 100 locations under construction, indicating a strong pipeline and anticipated improvement in restaurant openings.

Shareholder Returns through Buybacks and Dividends

Repurchased just under 300,000 shares and paid $7.7 million in dividends, indicating continued commitment to returning value to shareholders.

Negative Updates

Net Decrease in Locations

Closed 102 locations resulting in a net decrease of 32, with closures particularly affecting the QSR Frozen Treats segment.

Challenges in Canadian and U.S. Operations

Canadian revenues dipped by 2% and U.S. organic system sales decreased by 3.1%, affected by macroeconomic headwinds and weather disruptions.

Impact of Foreign Exchange on Earnings

Income attributable to owners declined to $1.7 million due to foreign exchange variations on intercompany loans, affecting adjusted EPS.

Company Guidance

During the MTY Food Group 2025 first-quarter earnings call, the company provided guidance reflecting a resilient performance amid challenging macroeconomic conditions. Same-store sales remained stable after adjusting for a leap year impact, despite extreme weather causing temporary store closures. Digital sales increased by 7%, making up 22% of total sales, highlighting MTY's investments in enhancing off-premise customer experiences. The company opened 70 locations and closed 102, resulting in a net decrease of 32 locations, with a strong pipeline of over 100 locations under construction for future growth. MTY reported a modest increase in normalized adjusted EBITDA to $60.2 million, with system sales growing by 2.5% year-over-year. Free cash flow net of lease payments rose by 18% to $43.5 million, representing 72% of normalized adjusted EBITDA, underscoring strong cash flow generation. The company repurchased nearly 300,000 shares and maintained a focus on strategic acquisitions while returning value to shareholders through dividends and buybacks.

MTY Food Group Financial Statement Overview

Summary

MTY Food Group demonstrates strong operational efficiency, with healthy EBIT and EBITDA margins. However, the decline in net profit margin and revenue growth raises concerns. The high debt-to-equity ratio suggests significant leverage, though cash flow metrics reveal solid cash generation capabilities. Overall, the company exhibits potential for growth but faces challenges in managing financial leverage and improving revenue.

Income Statement

Positive

The income statement shows a stable gross profit margin at 33.53% TTM, with an EBIT margin of 23.58% indicating strong operational efficiency. However, the net profit margin decreased to 2.08% TTM, reflecting potential issues in managing non-operational costs. Revenue growth is declining, with a decrease from the previous year, which is a concern.

Balance Sheet

Positive

The balance sheet reflects a high debt-to-equity ratio of 1.52, which indicates significant leverage and potential financial risk. However, the equity ratio is stable at 31.01%, suggesting a reasonable balance between equity and assets. ROE stands at 3.01% TTM, showing limited efficiency in generating returns from equity.

Cash Flow

Positive

The cash flow statement highlights a strong operating cash flow to net income ratio of 8.48, indicating robust cash generation relative to net income. Free cash flow grew by 16.42% over the previous year, suggesting effective capital management. However, free cash flow to net income is high, indicating reliance on cash flow to sustain net income.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.17B	1.16B	1.17B	716.52M	551.90M	511.12M
	Gross Profit
427.90M	419.18M	340.98M	255.40M	300.62M	276.61M
	EBIT
306.65M	171.22M	181.25M	133.58M	124.17M	81.83M
	EBITDA
150.15M	165.34M	263.02M	165.60M	169.80M	14.65M
	Net Income Common Stockholders
8.61M	24.17M	104.08M	74.82M	85.64M	-36.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.78M	50.41M	58.90M	59.48M	61.23M	44.30M
	Total Assets
2.62B	2.59B	2.68B	2.33B	1.90B	2.01B
	Total Debt
1.22B	1.22B	1.30B	1.08B	834.28M	1.02B
	Net Debt
1.15B	1.17B	1.24B	1.02B	773.04M	974.99M
	Total Liabilities
1.80B	1.78B	1.87B	1.60B	1.26B	1.43B
	Stockholders Equity
816.90M	801.84M	811.41M	723.41M	647.64M	581.75M
Cash Flow		Free Cash Flow
184.82M	177.08M	152.42M	130.14M	132.54M	128.03M
	Operating Cash Flow
209.43M	204.81M	184.59M	142.80M	139.30M	133.65M
	Investing Cash Flow
-20.02M	-23.54M	-319.66M	-258.42M	7.20M	-12.11M
	Financing Cash Flow
-173.07M	-186.78M	135.94M	105.30M	-129.58M	-126.37M

MTY Food Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTYFF		$691.72M	130.10	1.11%	2.89%	―	―
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
PZRIF		$360.68M	16.07	10.29%	6.16%	―	―
ODD	49 Neutral	C$23.62M	―		―	-6.91%	31.42%
AEG		C$31.13M	―	6.54%	―	―	―
JIVA		C$121.30K	―		―	―	―
FOOD	46 Neutral	C$13.74M	―	11.42%	―	-13.66%	-25.60%

* Consumer Cyclical Sector Average

Performance Comparison

MTYFF

MTY Food Group

30.24

-2.57

-7.83%

PZRIF

Pizza Pizza Royalty

10.85

1.88

20.96%

TSE:ODD

Odd Burger Corporation

0.24

0.07

41.18%

TSE:AEG

Aegis Brands

0.36

0.00

0.00%

TSE:JIVA

PlantX Life Inc.

0.10

-0.90

-90.00%

TSE:FOOD

Goodfood Market Corp

0.14

-0.16

-53.33%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.