MTY Food Group Q2 net income surges on foreign exchange gains

MTY Food

11/07/2025 11:17

Overview

MTY Food fiscal Q2 revenue largely in line with analyst expectations, per LSEG data

Adjusted EPS for Q2 missed analyst expectations, per LSEG data

Net income surged due to foreign exchange gains

Company repurchased 297,000 shares for C$12.6 million

Outlook

MTY expects stability in 2025 normalized adjusted EBITDA margins across all segments.

Company anticipates improved pace of net openings in future quarters.

MTY actively implementing strategic initiatives for U.S. market growth.

Company monitoring tariff impacts, implementing mitigation strategies if needed.

Result Drivers

FOREIGN EXCHANGE GAINS - Net income surged due to a C$35 million foreign exchange gain, primarily on intercompany loans

US MARKET PRESSURE - Same-store sales in the US declined by 3.8%, impacting overall sales performance

CANADIAN GROWTH - Strong performance in Canada with a 3% increase in organic system sales, driven by casual dining segment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
In line
C$304.87 mln
C$304.80 mln (3 Analysts)
Q2 Adjusted EPS
Miss
C$1.17
C$1.19 (3 Analysts)
Q2 EPS
C$2.49
Q2 Net Income
C$57.29 mln
Q2 Adjusted EBITDA
C$69.28 mln
Q2 Adjusted Free Cash Flow
C$40.16 mln
Q2 Same-Store Sales Growth
-1.9%


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$50.50, about 9.5% above its July 10 closing price of C$45.70

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX4XrvMc

(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.)