Overview

* MTY Food ( MTYFF ) fiscal Q2 revenue largely in line with analyst expectations, per LSEG data

* Adjusted EPS for Q2 missed analyst expectations, per LSEG data

* Net income surged due to foreign exchange gains

* Company repurchased 297,000 shares for C$12.6 million

Outlook

* MTY expects stability in 2025 normalized adjusted EBITDA margins across all segments.

* Company anticipates improved pace of net openings in future quarters.

* MTY actively implementing strategic initiatives for U.S. market growth.

* Company monitoring tariff impacts, implementing mitigation strategies if needed.

Result Drivers

* FOREIGN EXCHANGE GAINS - Net income surged due to a C$35 million foreign exchange gain, primarily on intercompany loans

* US MARKET PRESSURE - Same-store sales in the US declined by 3.8%, impacting overall sales performance

* CANADIAN GROWTH - Strong performance in Canada with a 3% increase in organic system sales, driven by casual dining segment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 In line C$304.87 C$304.80

Revenue mln mln (3

Analysts

)

Q2 Miss C$1.17 C$1.19

Adjusted (3

EPS Analysts

)

Q2 EPS C$2.49

Q2 Net C$57.29

Income mln

Q2 C$69.28

Adjusted mln

EBITDA

Q2 C$40.16

Adjusted mln

Free

Cash

Flow

Q2 -1.9%

Same-Sto

re Sales

Growth

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 ( MTYFF ) is C$50.50, about 9.5% above its July 10 closing price of C$45.70

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(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.)