MTY Food Group's Strategic Issuer Bid Renewal for Growth

Author: Caleb Price Updated: 06-30-2025 07:18 AM

MTY Food Group Inc. Announces Renewal of Normal Course Issuer Bid

MONTREAL — MTY Food Group Inc. (TSX: MTY) stands at the forefront of the restaurant industry as a prominent franchisor and operator of various restaurant concepts. Recently, the Toronto Stock Exchange has given the green light for MTY’s renewal of its normal course issuer bid (NCIB). This is an important strategic move to strengthen shareholder value and capitalize on market opportunities.

Details of the Normal Course Issuer Bid

With the renewed NCIB, MTY plans to acquire up to 1,142,068 common shares for cancellation between the set dates, marking approximately 5% of its 22,841,361 outstanding common shares. This initiative showcases MTY's commitment to smart financial management, aiming to buy back its shares at the best possible market rates through the TSX or alternative trading platforms in Canada.

Previous NCIB Performance

In the previous NCIB, which started on July 3, 2024, and ended on July 2, 2025, MTY was authorized to buy back 1,196,513 common shares. By the end of this period, MTY had repurchased 1,059,100 common shares at an average price of $44.96 each. These buybacks illustrate MTY's proactive approach to maintaining a healthy balance between capital allocation and shareholder returns.

Trading Volume and Purchase Strategy

The average daily trading volume for MTY shares on the TSX over the six months leading up to a recent end date was 50,791 shares. Based on TSX’s regulations, this allows MTY to purchase a maximum of 12,697 shares daily, which reflects a strategic method of engaging in share repurchases without causing significant market disruptions. MTY also plans to utilize an automatic securities purchase plan with a broker to facilitate share repurchases during periods it typically would not be able to buy back shares.

Management's Perspective on Share Repurchases

The Board of Directors and senior management firmly believe that the periodic repurchase of common shares at market prices represents a sound capital allocation strategy, promoting long-term growth and stability for MTY. This belief underscores their approach towards enhancing shareholder value through strategic financial measures and keen market awareness.

Commitment to Transparency and Shareholder Communication

MTY prioritizes transparent communication, ensuring that stakeholders remain informed about any forward-looking information that may impact the company’s trajectory. Stakeholders and investors can access detailed financial information and strategic insights from the Company’s Management Discussion and Analysis, available for review on official regulatory channels.

Frequently Asked Questions

What is the purpose of MTY's normal course issuer bid?

The purpose of the NCIB is to allow MTY to repurchase its common shares, thereby reducing the number of outstanding shares and potentially increasing the value for remaining shareholders.

How many shares is MTY authorized to repurchase?

MTY is authorized to repurchase up to 1,142,068 common shares during the renewal period of the NCIB.

What was the average price paid by MTY in the previous repurchase?

In the previous NCIB, MTY repurchased shares at a weighted average price of $44.96 each.

How does the trading volume affect share repurchases?

Trading volume impacts how many shares MTY can repurchase each day, with a limit of 25% of the average daily trading volume calculated over a specific period.

Where can investors find more information about MTY?

Investors can find more information on MTY’s financial performance and future strategies through the Company's reports available on SEDAR+ or by contacting their corporate communications.

About The Author

Hey there I'm Caleb Price, a writer and financial specialist who loves to assist others in understanding the financial world. Having years of practical experience and a solid background in finance, my area of expertise is converting difficult financial ideas into useful, doable insights for my blog and publications. My goal with my writing is to give readers the information and assurance they need to successfully negotiate their financial journeys.

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