07:16 AM EDT, 04/12/2024 (MT Newswires) -- MTY Food Group ( MTYFF ) , which closed 2.35% higher on Thursday, reported Friday net income attributable to shareholders fell 6% to $17.3 million, or $0.71 per diluted share compared with $18.4 million, or $0.75 per diluted share in the prior year quarter. The Capital IQ forecast was $0.83.

Quarterly revenue of near $279 million was 3% lower than the $286 million recorded the year before, and was largely in line with Capital IQ forecasts.

System sales decreased 2% to $1.33 billion from $1.36 billion in Q1 2023. System sales fell 2% in Canada and 3% in the US, while International sales remained stable.

Cash flows provided by operating activities increased to $54.2 million, from $33.5 million in Q1 2023.

At the end of Q1 2024, MTY's network had 7,112 locations, of which 6,890 were franchised or under operator agreements and 222 were corporate-owned, with 58% in the US, 35% in Canada and 7% International.

MTY declared a quarterly dividend payment of $0.28 per common share, payable on May 15.

"Following two years of strong system sales growth amid a challenging economic environment, first-quarter results were adversely affected by reduced consumer spending and extreme weather, primarily in the first 6 weeks of 2024," said Chief Executive Eric Lefebvre in a statement. "Despite slightly slower sales, we generated the highest operating cash flows in our history in the first quarter, enhancing our ability to reimburse debt and build a treasure chest for future growth opportunities."