MTY Food Group Inc. Earnings Recaps
Q2 2026
Jul 12, 2026
MTY Food Group’s shares dropped 10.6% following disappointing earnings marked by same-store sales declines, margin pressure, and a cautious outlook amid ongoing consumer weakness. The market clearly reacted negatively to continued same-store sale deterioration and the announcement of significant corporate store closures.
Key takeaways
- Same-store sales remained negative, falling 2.2% in the U.S. and 1.8% in Canada, with traffic weakness cited as the primary driver.
- The company decided to close 68 underperforming corporate-owned stores, which incurred losses exceeding CAD 10 million over the past year, expecting closure costs of CAD 10-12 million to impact near-term cash flows.
- Normalized adjusted EBITDA declined by CAD 9.8 million year-over-year to CAD 60.2 million, reflecting weaker contributions from U.S. and international corporate operations and franchising segments.
- Franchise segment EBITDA fell 5.8% to CAD 50.9 million, with margins slightly down to 52%, weighed down by lower turnkey project revenues and foreign exchange headwinds.
- Net store growth was positive with six new openings, and the company expects an acceleration in store openings in the second half, but recent trends and corporate rationalization paint a cautious picture.
Q1 2026
Apr 10, 2026
MTY Food Group delivered a resilient first quarter amid challenging macroeconomic conditions, with modest decline in same-store sales offset by digital growth and a robust new store pipeline. Confidence remains high for 2026 net location growth driven by experienced franchisee expansion.
Key takeaways
- Same-store sales declined 2.5% overall, with Canada down 0.8% and U.S. up 3.6%; early Q2 data shows signs of sequential improvement.
- Digital sales maintained steady at 23%, growing 3% excluding FX; Canadian digital sales rose 13%, indicating successful digital experience enhancements.
- Net store count saw a reduction, but a strong pipeline of nearly 200 stores under construction and increased franchisee-led expansion bode well for 2026 growth.
- Normalized EBITDA remained stable at $60.1 million; franchise EBITDA margin improved modestly to 48%.
- Net income attributable to owners was $36.9 million ($1.62/share), with free cash flow supporting debt reduction and future investments.