Overview

* MTY Food ( MTYFF ) fiscal Q3 revenue grows 1%, beating analyst expectations

* Adjusted EPS for fiscal Q3 misses analyst expectations

* Net income for fiscal Q3 decreases due to impairment losses

Outlook

* MTY anticipates strong demand for its brands and improved pace of store openings

* Company expects stability in normalized adjusted EBITDA margins across segments

* MTY plans to drive strong free cash flows in 2025 with lower capex

Result Drivers

* REVENUE GROWTH - Revenue increased by 1% due to growth in the processing, distribution, and retail segment, partially offset by declines in franchise and corporate segments

* NET INCOME DECLINE - Net income decreased due to impairment losses on intangible assets in the US & International geographical and Canadian segments

* STORE OPENINGS - Positive net store openings of 15 locations indicate demand for MTY's concepts and strong execution by teams

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$296.98 C$296.80

Revenue mln mln (3

Analysts

)

Q3 Miss C$1.19 C$1.24

Adjusted (3

EPS Analysts

)

Q3 EPS C$1.22

Q3 Net C$27.87

Income mln

Q3 C$73.20

Adjusted mln

EBITDA

Q3 C$39 mln

Adjusted

Free

Cash

Flow

Q3 -1.60%

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$49.00, about 23% above its October 9 closing price of C$37.75

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(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.)