Canada's MTY Food Q2 revenue falls on soft consumer spending

MTY Food

10/07/2026 11:10

Overview
Canada restaurant franchisor's Q2 revenue fell 8% yr/yr amid lower corporate store sales
Adjusted EPS dropped to C$0.67 from C$2.49 a year ago
Company to close 68 underperforming corporate locations to improve profitability

Outlook
MTY expects improvement in pace of store openings and net location growth in coming quarters
Company plans to close 68 corporate stores in next 6-9 months at estimated cost of $10-$12 mln
MTY expects stability in normalized adjusted EBITDA margins, with possible fluctuations in corporate store margins

Result Drivers
SOFT CONSUMER SPENDING - Co said continued pressure on consumer spending and a challenging operating environment weighed on results
CORPORATE STORE CLOSURES - Co incurred a C$7.5 mln impairment charge as it moves to close 68 underperforming corporate-owned locations
LOWER CORPORATE STORE SALES - Revenue decline was primarily attributable to lower revenue from corporate stores, tightly correlated to a decrease in the number of corporate-owned locations

Company press release: ID:nGNXzwpFm

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$279.94 mln
C$297 mln (2 Analysts)
Q2 EPS
 
C$0.67
 
Q2 Net Income
 
C$15.45 mln
 
Q2 Adjusted EBITDA
 
C$59.92 mln
 
Q2 Same-Store Sales Growth
 
-2.10%
 

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$45.50, about 20.6% above its July 9 closing price of C$37.74
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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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.)