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MTY Food Group (MTY Food Group) Operating Income : $130.4 Mil (TTM As of Feb. 2024)


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What is MTY Food Group Operating Income?

MTY Food Group's Operating Income for the three months ended in Feb. 2024 was $28.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 was $130.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. MTY Food Group's Operating Income for the three months ended in Feb. 2024 was $28.1 Mil. MTY Food Group's Revenue for the three months ended in Feb. 2024 was $206.4 Mil. Therefore, MTY Food Group's Operating Margin % for the quarter that ended in Feb. 2024 was 13.62%.

Warning Sign:

MTY Food Group Inc operating margin has been in a 5-year decline. The average rate of decline per year is -5.8%.

MTY Food Group's 5-Year average Growth Rate for Operating Margin % was -5.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. MTY Food Group's annualized ROC % for the quarter that ended in Feb. 2024 was 4.90%. MTY Food Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 was 47.46%.


MTY Food Group Operating Income Historical Data

The historical data trend for MTY Food Group's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

MTY Food Group Operating Income Chart

MTY Food Group Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 87.16 75.14 96.70 97.39 132.23

MTY Food Group Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.83 37.09 37.27 27.93 28.10

MTY Food Group Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $130.4 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


MTY Food Group  (OTCPK:MTYFF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

MTY Food Group's annualized ROC % for the quarter that ended in Feb. 2024 is calculated as:

ROC % (Q: Feb. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2023 ) + Invested Capital (Q: Feb. 2024 ))/ count )
=112.416 * ( 1 - 13.9% )/( (1963.949 + 1987.99)/ 2 )
=96.790176/1975.9695
=4.90 %

where

Invested Capital(Q: Nov. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1955.219 - 107.651 - ( 42.967 - max(0, 321.429 - 205.048+42.967))
=1963.949

Invested Capital(Q: Feb. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1968.911 - 109.462 - ( 37.462 - max(0, 330.276 - 201.735+37.462))
=1987.99

Note: The Operating Income data used here is four times the quarterly (Feb. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

MTY Food Group's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2023  Q: Feb. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=103.884/( ( (214.868 + max(-138.006, 0)) + (222.871 + max(-145.99, 0)) )/ 2 )
=103.884/( ( 214.868 + 222.871 )/ 2 )
=103.884/218.8695
=47.46 %

where Working Capital is:

Working Capital(Q: Nov. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(60.552 + 15.124 + 18.104) - (107.651 + 118.822 + 5.313)
=-138.006

Working Capital(Q: Feb. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(58.298 + 14.433 + 22.987) - (109.462 + 129.089 + 3.157)
=-145.99

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Feb. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

MTY Food Group's Operating Margin % for the quarter that ended in Feb. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Feb. 2024 )/Revenue (Q: Feb. 2024 )
=28.104/206.403
=13.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


MTY Food Group Operating Income Related Terms

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MTY Food Group (MTY Food Group) Business Description

Traded in Other Exchanges
Address
8150 autoroute Transcanadienne, Suite 200, Saint-Laurent, QC, CAN, H4S 1M5
MTY Food Group Inc is a franchisor in the quick service and casual dining food industry. Its activities consist of franchising and operating corporate-owned locations as well as the sale of retail products under a multitude of banners. The company's operating segment is based on geographical regions namely Canada and US and International. The company brands include Big Smoke Burger, Cafe Depot, Country Style, Croissant Plus, Cultures, Extremepita, Fabrika, Jus Jugo Juice, Koya Japan, ManchuWok, Muffin plus, Valentine, Van Houtte, Shushiman and others.

MTY Food Group (MTY Food Group) Headlines

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