Q4 2025 MTY Food Group Inc Earnings Call Transcript
Key Points
- MTY Food Group Inc (MTYFF) reported a net addition of 19 locations in Q4, marking the first positive annual net unit growth since 2013.
- Franchise operations segment profit improved by 53% in Q4, primarily due to gift card breakage income.
- Normalized adjusted EBITDA increased by 48% year-over-year, reaching $87.7 million for the fourth quarter.
- The company raised its quarterly dividend by 12% to $0.37 per share, reflecting strong cash flow generation.
- MTY Food Group Inc (MTYFF) ended the quarter with a debt-to-EBITDA ratio of approximately 2 times, providing financial flexibility for future opportunities.
- Same-store sales declined by 1.7% overall in Q4, with a 2.8% decrease in the U.S. market.
- Franchise operations in the U.S. experienced a 12% decline in profit, aligning with lower same-store sales.
- The company faces challenges in the competitive pizza market, impacting brands like Papa Murphy's.
- Franchise operating costs in the U.S. and international markets increased by $2.5 million due to higher wages and IT licensing costs.
- The macroeconomic environment remains challenging, affecting consumer sentiment and spending.
Good morning, and welcome to MTY Food Group 2025 fourth quarter and year-end results 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 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 Thursday, February 19, 2026, at 8:30 AM Eastern Time.
I would now like to turn the call over to Mr. Eric Lefebvre, Chief
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