Restaurant franchiser MTY Food Q3 revenue beats estimates

MTY Food

10/10/2025 11:09

Overview

MTY Food fiscal Q3 revenue grows 1%, beating analyst expectations

Adjusted EPS for fiscal Q3 misses analyst expectations

Net income for fiscal Q3 decreases due to impairment losses

Outlook

MTY anticipates strong demand for its brands and improved pace of store openings

Company expects stability in normalized adjusted EBITDA margins across segments

MTY plans to drive strong free cash flows in 2025 with lower capex

Result Drivers

REVENUE GROWTH - Revenue increased by 1% due to growth in the processing, distribution, and retail segment, partially offset by declines in franchise and corporate segments

NET INCOME DECLINE - Net income decreased due to impairment losses on intangible assets in the US & International geographical and Canadian segments

STORE OPENINGS - Positive net store openings of 15 locations indicate demand for MTY's concepts and strong execution by teams

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$296.98 mln
C$296.80 mln (3 Analysts)
Q3 Adjusted EPS
Miss
C$1.19
C$1.24 (3 Analysts)
Q3 EPS
C$1.22
Q3 Net Income
C$27.87 mln
Q3 Adjusted EBITDA
C$73.20 mln
Q3 Adjusted Free Cash Flow
C$39 mln
Q3 Same-Store Sales Growth
-1.60%


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$49.00, about 23% above its October 9 closing price of C$37.75

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

Press Release: ID:nGNX1JWSmt

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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.)