MTY Food Group Inc. Q2 2026 Earnings Recap

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.