Canada's MTY Food Q3 revenue slightly misses estimates on corporate store weakness

MTY Food

09/10/2026 11:14

Overview
Canada restaurant franchisor's Q3 revenue fell 7.1% yr/yr, slightly missing analyst expectations
Adjusted EBITDA for Q3 declined yr/yr, reflecting lower corporate store profitability
Company ended strategic review, will restore share buyback and increase quarterly dividend

Outlook
MTY to restore normal course issuer bid and evaluate a substantial issuer bid
Company to focus on asset-light franchising and streamlining operations

Result Drivers
CORPORATE STORE CLOSURES - Co said lower revenue was mainly due to fewer corporate-owned stores and delayed retail promotions
SOFT CONSUMER SPENDING - Co cited continued pressure from commodity costs and softer consumer spending in some markets as impacting profitability
FRANCHISE REVENUE GROWTH - Franchise segment revenue rose due to higher recurring revenue in US and International and favorable FX, partially offset by lower recurring revenue in Canada

Company press release: ID:nGNX14RGPM

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
C$277.73 mln
C$277.86 mln (5 Analysts)
Q3 Net Income
 
C$24.76 mln
 
Q3 Adjusted EBITDA
 
C$59.96 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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$40.00, about 32.2% above its October 8 closing price of C$30.25
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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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.)