Q2 2026 MTY Food Group Inc Earnings Call Transcript
Key Points
- MTY Food Group Inc (MTYFF) reported strong free cash flows despite challenging market conditions.
- The company achieved positive net store growth with six new locations added in the quarter.
- Sales trends improved in Canada in June, with most concepts showing positive same-store sales.
- The development pipeline remains robust, with expectations for accelerated store openings in the second half of the year.
- The asset-light, well-diversified portfolio continues to generate strong cash flows, providing flexibility in a complicated consumer environment.
- Same-store sales remained negative, with decreases of 2.2% in the US and 1.8% in Canada.
- Traffic was under pressure, contributing to lower same-store sales.
- The company decided to close 68 underperforming corporate-owned stores, which collectively lost over $10 million in the last 12 months.
- Normalized adjusted EBITDA decreased by $9.8 million from the same period last year, mainly due to reduced profitability in corporate operations.
- Franchise revenues decreased, impacted by lower turnkey projects in Canada and gift card program-related revenues in the US.
Good morning and welcome to the MTY Food Group 2026 second-quarter earnings conference call. (Operator Instructions) Listeners are reminded that the 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, July 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 ahead,
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