Pinkberry parent company MTY Food Group hires TD Bank to explore a sale, sources say

Toronto-Dominion Bank

17/11/2025 17:24

MTY Food Group owns over 80 restaurant chains, including Pinkberry, Cold Stone Creamery and Wetzel's Pretzels

MTY's market value is nearly $550 million, stock is down nearly 25% this year

Private equity firms tend to like franchised chains due to steady royalty fees

By Abigail Summerville

Nov 17 (Reuters) - Canada's MTY Food Group MTY.TO, owner of restaurant chains including Pinkberry and Cold Stone Creamery, has hired Toronto Dominion Bank to explore a sale, according to people familiar with the matter, who asked not to be named because the process is confidential.

THE DETAILS

The Montreal-based company operates or franchises over 80 restaurant chains, including Wetzel’s Pretzels, Papa Murphy’s and TacoTime, in North America and internationally.

It has 7,061 locations, 256 of which are company owned with the rest franchised.

MTY said it does not comment on market rumors or speculation. TD Bank did not immediately respond to requests for comment.

THE NUMBERS

MTY has a market value of nearly $550 million.

Any deal would likely command a premium to its market value, the sources said.

MTY's stock has lost almost a quarter of its value so far this year.

For the third quarter ended August 31, MTY's revenue increased by about 1% year-over-year to $297 million, while its net income attributable to owners fell by about 20% to $27.9 million, or $1.22 per diluted share.

THE BACKGROUND

MTY Chairman Stanley Ma founded the company in 1979 with just one restaurant location.

He served as CEO from 2004 to 2018 and is the company’s largest shareholder with a 13.9% stake, according to London Stock Exchange Group data.

Private equity firms have been big buyers of franchised restaurant chains in recent years, attracted to their steady royalty fees.

The quick-service restaurant industry has weakened as cash-strapped consumers cut out eating away from home.

 (Reporting by Abigail Summerville in New York. Editing by Dawn Kopecki and Susan Fenton)

 ((abigail.summerville@thomsonreuters.com))