MTY Food Group Inc. Shows Growth in Third Quarter 2025
MTY Food Group Inc. Announces Third Quarter Insights
MTY Food Group Inc. (TSX: MTY) has published its financial results for the third quarter of fiscal 2025. This update reveals crucial metrics reflecting the company's performance amidst fluctuating market conditions. MTY remains optimistic and continues to enhance its various restaurant brands.
Financial Highlights Unveiled
During the third quarter, segment profits increased by 2% to approximately $73.2 million, demonstrating resilience in operational efficiency.
- Net income attributable to owners decreased to $27.9 million or $1.22 per diluted share, down from $34.9 million or $1.46 per diluted share reported in the same period last year.
- Operating cash flows showed a reduction, totaling $39.0 million compared to $66.4 million in the previous year, largely resulting from timing in accounts receivable collection and higher income tax payments.
- However, excluding non-cash items, operating cash flows improved to $73.6 million from $71.4 million year-over-year.
Key Performance Indicators
MTY has reported an increase of 3% in normalized adjusted EBITDA, amounting to $74.0 million compared to $71.9 million in the same quarter last year. The company recorded a net addition of 15 new stores during Q3-25, contrasting with a net closure of 41 stores in Q3-24, bringing the total to 7,061 locations globally.
System Sales Trends
System sales reported steadfast performance at approximately $1.5 billion for the quarter, with same-store sales decreasing slightly by 1.6%, an improvement from a 1.9% decline noted in the preceding Q2-25.
Record High Digital Sales
Interestingly, digital sales increased to $273.4 million, marking a 1% rise from $270.7 million in Q3-24, driven by strengthened capabilities in online ordering and customer engagement initiatives.
Real Estate Expansion and Corporate Developments
MTY continues to strategically expand its network of locations, effectively catering to its diverse consumer base. The third quarter saw the opening of 96 locations, which marks a robust growth in restaurant presence nationwide. The geographical distribution of MTY's locations remains balanced with 58% in the US, 35% in Canada, and 7% in international locations.
Management Insights
Eric Lefebvre, CEO of MTY, stated, "This quarter's results reflect ongoing economic volatility, yet we are heartened by the sequential improvements observed across key brands. We are dedicated to enhancing our menu offerings and reinforcing our market position as conditions stabilize. Additionally, we acknowledge the hard work of our teams in implementing an ERP system across Canada.'"
Liquidity Position
As of the end of the quarter, cash and cash equivalents stood at $37.1 million, with long-term debt reported at $638.9 million. MTY’s commitment to lowering long-term debt is evidenced by the repayment of $30.4 million during this quarter.
Future Outlook
Moving ahead, MTY plans to tackle current challenges while leveraging growth opportunities across its multiple restaurant brands. Management indicates that they are optimistic about ongoing consumer demand while navigating external economic influences.
Dividend Announcement
In a move to reward its shareholders, MTY has declared a quarterly dividend of $0.33 per common share, scheduled for distribution on November 14, 2025, to registered shareholders as of November 4, 2025.
Frequently Asked Questions
1. What are the key findings from MTY's Q3 2025 results?
MTY demonstrated growth, with a 2% increase in segment profits and a promising 3% rise in normalized adjusted EBITDA compared to the previous year.
2. How did digital sales perform in the latest quarter?
Digital sales reached $273.4 million, reflecting a 1% growth, driven primarily by enhancements in online customer engagement.
3. What strategic initiatives is MTY focusing on?
MTY is focusing on menu innovation, improving customer experiences, and exploring new location openings to drive growth.
4. What is MTY's current liquidity situation?
MTY reported $37.1 million in cash with long-term debts amounting to $638.9 million, demonstrating a strong cash position for future investments and obligations.
5. When will the next dividend payment be issued?
The next quarterly dividend payment of $0.33 per common share is set for November 14, 2025, to shareholders registered by November 4, 2025.
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