Q3 2025 MTY Food Group Inc Earnings Call Transcript
Key Points
- MTY Food Group Inc (MTYFF) achieved a net gain of 15 locations in the third quarter, supported by a robust pipeline of new locations and strong franchisee interest.
- Digital sales grew by 1% in Q3, now representing 19% of total sales, with a 3% increase excluding Papa Murphy's and foreign exchange impacts.
- The company reported a 3% year-over-year increase in normalized adjusted EBITDA, aided by a $5.8 million employee retention credit from the US government.
- The Food Processing, Distribution, and Retail segment delivered a 19% revenue growth, driven by a shift in the retail model and successful promotional activities.
- MTY Food Group Inc (MTYFF) maintains a strong cash flow generation profile, with free cash flow net of lease payments standing at over $120 million, representing roughly 14% of market capitalization.
- Same-store sales in Canada were largely flat, with a 2.5% decline in mall-based locations impacting overall performance.
- Papa Murphy's system sales declined, significantly affecting consolidated digital sales due to its heavy reliance on online transactions.
- Net income attributable to owners decreased to $27.9 million from $34.9 million in Q3 2024, mainly due to a $6.2 million net impairment charge on intangible costs.
- Cash flows from operations decreased by $27.4 million compared to Q3 2024, primarily due to a temporary working capital decrease tied to delayed invoicing during the SAP rollout.
- The prolonged US government shutdown poses risks to SBA loan approvals, potentially slowing new restaurant development and impacting consumer spending.
Good morning, and welcome to the MTY Food Group 2025 third quarter results earnings 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 13, 2025, 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, October 10, 2025 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 ahead, sir.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
