MTY Reports Second Quarter Results for Fiscal 2025
Net income attributable to owners increased to $57.3 million, or $2.49 per diluted share compared to $27.3 million, or $1.13 per diluted share in Q2-24.
Cash flows provided by operating activities were $40.2 million compared to $40.6 million in Q2-24, a decrease of $0.4 million mainly attributable to lower segment EBITDA.
Franchise segment normalized adjusted EBITDA(1) increased by 3% to attain $54.0 million in the quarter, compared to $52.6 million in Q2-24.
Normalized adjusted EBITDA(1) decreased 5% to reach $70.0 million in the quarter, compared to $73.7 million in Q2-24.
System sales(2) for the quarter increased slightly at $1.5 billion compared to Q2-24.
Free cash flows net of lease payments(1) decreased to $23.6 million in the quarter compared to $24.3 million in Q2-24. Free cash flows net of lease payments per diluted share(3) were $1.03 for the quarter compared to $1.01 in Q2-24.
Ended the quarter with 7,046 locations compared to 7,079 location at the end of the last fiscal year. Stable store count compared to prior quarter with a net decrease of one location.
Adjusted earnings per share(1) of $1.17 per diluted share compared to $1.25 in Q2-24.
Repurchased and cancelled 297,000 shares for a consideration of $12.6 million in Q2-25, bringing the year-to-date total to 584,400 shares for a consideration of $26.4 million.
(1) This is a non-GAAP measure. Please refer to the "Non-GAAP Measures" section at the end of this press release.(2) See section "Definition of supplementary financial measures" found at the end of this press release.(3) See section "Definition of non-GAAP ratios" found in the Supplemental Information section for definition.
MONTREAL, July 11, 2025 (GLOBE NEWSWIRE) -- MTY Food Group Inc. ("MTY", "MTY Group" or the "Company") (TSX:MTY), one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported today financial results for its second quarter of fiscal 2025 ended May 31, 2025 and declared a quarterly dividend of 33.0¢ per share, payable on August 15, 2025 to shareholders registered in the Company's records at the end of the business day on August 5, 2025.
"From a same-store sales standpoint, the second quarter reflected a tale of two geographies. In the U.S., what began as volatility in Q1 evolved into broader macroeconomic pressure in Q2, which impacted both traffic and average check across much of our network. That said, Village Inn stood out as a bright spot, and we're actively rolling out initiatives aimed at reinvigorating the guest experience across our key banners," said Eric Lefebvre, CEO of MTY. "We believe these are near-term challenges, and we're confident that the steps we're taking will position us well as the environment improves. In contrast, Canada continued to shine, with strong momentum driving solid results, particularly in the casual dining segment. This strength underscores the value of our diversified platform and the resilience of our brands in varied market conditions."
"While we're not satisfied with the year-over-year EBITDA performance this quarter, it's important to note that the impact was primarily concentrated within our Corporate segment, with our Franchise and Retail segments performing better," Lefebvre continued. "The softness in the Corporate segment was largely driven by some specific banners. We're actively evaluating strategic options, ranging from accelerating our franchising efforts with one of the banners to implementing broader, transformative changes with the other. We're confident that these initiatives will strengthen the segment and enhance long-term profitability."
Financial Highlights(in thousands of $, except per share information)
Q2-2025
Q2-2024
6 Months 2025
6 Months 2024
Revenue
304,874
303,739
589,666
582,383
Adjusted EBITDA(1)
69,285
73,198
127,735
132,460
Normalized adjusted EBITDA(1)
70,021
73,683
130,211
133,218
Net income attributable to owners
57,289
27,278
59,032
