Canada's MTY Food Q1 revenue misses estimates on US corporate unit weakness

MTY Food

10/04/2026 11:14

Overview

Canada restaurant franchisor's Q1 revenue fell 6% and missed analyst expectations

Adjusted EPS for Q1 rose 13% yr/yr and beat analyst estimates

Same-store sales declined 2.5% amid weaker consumer sentiment

Outlook

Company anticipates improvement in pace of store openings and expects net location growth in 2026

MTY expects stability in normalized adjusted EBITDA margins across segments, with possible fluctuations in corporate store margins

Company says macroeconomic and policy uncertainties, including tariffs and oil prices, could affect performance

Result Drivers

DEPRESSED CONSUMER SENTIMENT - Co said weaker consumer sentiment weighed on same-store sales, especially in US and international markets

LOWER US CORPORATE STORE REVENUE - Revenue decline was mainly due to lower revenue from US corporate stores, while Canada was supported by growth in food processing, distribution and retail

Company press release: ID:nGNX6vbGQm

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$267.77 mln
C$272.08 mln (4 Analysts)
Q1 Adjusted EPS
Beat
C$0.98
C$0.84 (3 Analysts)
Q1 Net Income attributable to owners
C$36.93 mln
Q1 Adjusted EBITDA
C$59.82 mln
Q1 Cash flows from operations
C$40.90 mln
Q1 Same-Store Sales Growth
-2.50%


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$47.00, about 16.3% above its April 9 closing price of C$40.41

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)