Canada's MTY Food beats Q4 revenue estimates, swings to profit

MTY Food

19/02/2026 11:15

Overview

Canada restaurant franchisor's Q4 revenue rose, beating analyst expectations

Net income for Q4 improved significantly, reversing a loss from previous year

Company initiated strategic review process to enhance shareholder value

Outlook

MTY anticipates improvement in store openings pace in upcoming quarters

Company expects stability in normalized adjusted EBITDA margins across segments

MTY sees strong free cash flows into 2026, supported by lower capex

Result Drivers

GIFT CARD BREAKAGE - Segment profits and normalized adjusted EBITDA increased due to a one-time catch-up of gift card breakage income on unutilized gift cards

STORE OPENINGS - Net store openings of 19 locations contributed to positive growth, ending the year with 7,080 locations

FOREIGN EXCHANGE IMPACT - System sales increase partly due to positive foreign exchange fluctuations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$305.40 mln
C$282.08 mln (4 Analysts)
Q4 Net Income
C$32.09 mln
Q4 Adjusted EBITDA
C$87.34 mln
Q4 Adjusted Free Cash Flow
C$46.18 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for MTY Food Group Inc is C$43.50, about 4.1% above its February 18 closing price of C$41.80

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXHRDjq

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)