Q1 2026 MTY Food Group Inc Earnings Call Transcript
Key Points
- MTY Food Group Inc (MTYFF) reported a sequential improvement in sales in March and early Q2, indicating potential recovery despite challenging macroeconomic conditions.
- Digital sales held steady at 23% of total sales, with a 3% growth excluding foreign exchange, and Canada saw a 13% increase in digital sales.
- The company is investing in enhancing the digital experience for customers, which is expected to drive future growth.
- MTY Food Group Inc (MTYFF) has a robust pipeline with nearly 200 locations under construction, indicating strong future expansion potential.
- The company's asset-light model continues to generate strong free cash flows, providing flexibility for debt reduction, future investments, and shareholder returns.
- Same-store sales decreased by 2.5% overall in the first quarter, with Canada down 0.8% and some seasonal brands experiencing a soft quarter.
- The company closed more locations than it opened in Q1, with 52 openings and 90 closures, resulting in negative store growth for the quarter.
- Franchise revenue decreased to $90.7 million from $92.9 million in the same period last year, impacted by foreign exchange variations and lower system sales.
- The corporate store segment faced challenges with lower system sales and a decrease in the number of corporate-owned locations in the US.
- Higher supply chain costs led to slightly lower margins in the food processing, distribution, and retail segment compared to the previous year.
Good morning, and welcome to the MTY Food Group 2026 first-quarter earnings conference call. (Operator Instructions)
Listeners are reminded that portions of today's discussion may contain forward-looking statements that reflect current views with respect to future events. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on MTY Food Group's risks and uncertainties related to these forward-looking statements, please refer to the company's annual information form dated February 19, 2026, which is posted on SEDAR+.
The company's press release, MD&A and financial statements were issued earlier this morning and are available on its website and on SEDAR+. All figures presented on today's call are in Canadian dollars, unless otherwise stated. This morning's call is being recorded on Friday, April 10, 2026, at 8:30 AM Eastern Time.
I would now like to turn the call over to Mr. Eric Lefebvre, Chief Executive Officer of MTY Food Group. Please go
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