MTY Food Group (MTYFF) Q3 2026 Earnings Report
MTYFF Q3 2026 EPS Results
- Actual EPS
- $0.88
- Consensus EPS
- $0.84
- Beat/Miss
- Beat by +$0.05
- One Year Ago EPS
- $0.83
MTYFF Q3 2026 Revenue Results
- Actual Revenue
- $194.64M
- Expected Revenue
- $194.73M
- Beat/Miss
- Missed by -$93.91K
- YoY Revenue Growth
- -6.49%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/09/2026
- Time
- Before Open
- Conference Call
- Friday, October 9, 2026
MTY Food Group's next earnings date is estimated for February 18, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was predominantly positive, supported by stable franchise margins, higher adjusted EPS, growing digital sales, strong free cash flow generation, a robust store-opening pipeline, debt reduction, and shareholder-return initiatives. These positives were tempered by a 2.7% decline in U.S. same-store sales, lower consolidated EBITDA, a 12.6% revenue decline in the Food Processing, Distribution and Retail segment, negative Q3 net openings, and ongoing traffic, cost, and corporate-store challenges.
MTY expects results in the Food Processing, Distribution and Retail segment to show steady improvement in the coming quarters, healthy net new store openings by next quarter and in subsequent periods, the bulk of one-time corporate-store costs over the next 2 quarters, and associated benefits starting next quarter, including an estimated $2.5 million benefit next year; the previously discussed $10 million-ish benefit from closures remains valid, the Q4 pipeline should be probably our best quarter ever in terms of number of store openings, and 2027 should be strong as well. MTY aims to return to being a pure play franchisor with maybe 1% of its stores being corporate, restore the normal course issuer bid, increase the quarterly dividend to $0.50, and pursue a substantial issuer bid, which is more likely than not; management expects the pace of franchising to accelerate, does not expect to increase expenses for brand investment, is comfortable to 3x EBITDA, and expects to see some action on brand portfolio optimization probably in 2027.
- Canada Same-Store Sales Improved to Essentially FlatCanadian same-store sales sequentially improved to essentially flat in Q3. Management said Canadian consumers remained resilient, with mall concepts, breakfast places, and sushi concepts performing well.
- Franchise Segment Revenue and EBITDA GrowthFranchise segment revenue increased 1.6% to $102.4 million. Revenue growth came from the U.S. and International segment through increases in recurring revenue streams and higher gift card sales. Segment normalized adjusted EBITDA improved by 1%.
- Stable Franchise Margins Despite Wage InflationCore franchise segment margins remained stable at 54%, as improved cost efficiency on controllable expenses offset wage inflation.
- Free Cash Flow Per Share Increased 6.7%Free cash flow net of rent payments per diluted share reached $5.57 over the last 12 months, an increase of 6.7% versus the previous 12-month period. Free cash flow net of lease payments also increased 0.3% in Q3, primarily due to lower taxes paid, improved working capital movement, and higher proceeds from the disposal of corporate stores.
- Adjusted EPS Increased 5.9%Adjusted earnings per share increased 5.9% in Q3 to $1.26, primarily due to foreign exchange and lower income tax expenses.
- Digital Sales Continued to ExpandDigital sales totaled $279.2 million in Q3, an increase of 0.5% excluding foreign exchange. Digital sales represented 19.8% of total sales, up from 19.3% in the prior year. Management said there remains significant potential to extend digital market share in Canada.
- Food Segment Margins ImprovedAlthough Food Processing, Distribution and Retail revenue declined, normalized adjusted EBITDA margins improved to 11% from 10% in the prior year, with operating expenses remaining closely aligned with sales levels.
- Strong New-Store PipelineManagement said the new-store pipeline remains robust, with strong demand from new and existing franchisees. The company expects a healthy level of net new store openings in Q4 and subsequent periods, described Q4 as potentially its best quarter ever for store openings, and said 2027 should also be strong.
- Existing Franchisees Are Driving Pipeline DemandMore than half of the locations in the new-store pipeline are from existing franchisees, which management described as validation for the business models. The franchising teams are selling as many, if not more, locations than in the past.
- Corporate Store Rationalization Is ProgressingThe company had closed 50 of the 75 corporate locations identified for closure by the end of Q3. Management expects an estimated $2.5 million benefit directly attributable to the closures next year, while the cost estimate remained unchanged despite adding seven locations to the closure plan.
- Strategic Review Reaffirmed MTY Platform StrengthThe strategic review generated strong interest among potential investors and reaffirmed management's stated view of the strength, resilience, and strategic value of MTY's platform. The board and special committee unanimously concluded that accelerating the current strategic plan was the most compelling path forward.
- Shareholder Return Initiatives AnnouncedProposed short-term actions include increasing the quarterly dividend to $0.50, restoring the normal course issuer bid, and evaluating a potential substantial issuer bid. Management said it is motivated to pursue an SIB, subject to regulatory steps.
- Healthy Balance Sheet and Debt ReductionMTY ended the quarter with net debt of $515.1 million and had repaid over $20 million in Q4 at the time of the financial discussion. Later in the call, management said an additional $26 million had been repaid since the beginning of Q4. Net debt to EBITDA was approximately 1.9x, and management said it was comfortable increasing leverage to 3x EBITDA.
- Progress Toward an Asset-Light Franchise ModelManagement intends to revert to an asset-light franchising model with a minimal number of corporate locations, potentially around 1% of stores being corporate. The company has begun franchising strong-performing restaurants and had already franchised its first two Sauce locations.
- ERP and Data Infrastructure Investments CompletedManagement said the new ERP was delivered on time and on budget. MTY has also invested in data infrastructure, systems architecture, and in-house data scientists to improve brand intelligence, consumer targeting, and consumer acquisition.
- Brand Portfolio Optimization UnderwayMTY is evaluating each brand's potential, including whether certain brands may create more value in another owner's hands. Management said four, five, or six brands naturally disappear through attrition each year as the company converts to stronger concepts, while brands with viable turnaround or growth plans may be retained.
- Papa Murphy's Model Maintains Healthy Margins in Strong LocationsManagement said Papa Murphy's franchisees that are performing well are doing extremely well, and that the business model and margins allow stores to remain profitable even when sales decline slightly.
- No Expected Increase in Overall Brand-Investment ExpensesManagement said investments in brands would come from P&L funds rather than capital expenditures, and that it does not expect to increase expenses. Budgets may be reshuffled or prioritized toward selected brands.
- Franchisee Profitability Remains Above Industry Average OverallDespite pressure from sales, traffic, costs, and expensive proteins, management said the vast majority of franchisees are operating well above the industry average, while acknowledging that some of the approximately 7,000 locations are struggling.
MTYFF Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 18, 2027 | 2026 (Q4) | 0.63- | 1.32 | ― | ― |
| Oct 09, 2026 | 2026 (Q3) | 0.840.88 | 0.83 | 5.88% (+0.05) | |
| Jul 10, 2026 | 2026 (Q2) | 0.790.68 | 0.82 | -17.09% (-0.14) | |
| Apr 10, 2026 | 2026 (Q1) | 0.570.69 | 0.61 | 12.64% (+0.08) | |
| Feb 19, 2026 | 2025 (Q4) | 0.581.32 | -1.64 | 180.34% (+2.96) | |
| Oct 10, 2025 | 2025 (Q3) | 0.860.83 | 1.02 | -18.49% (-0.19) | |
| Jul 11, 2025 | 2025 (Q2) | 0.850.82 | 0.79 | 3.54% (+0.03) | |
| Apr 11, 2025 | 2025 (Q1) | 0.590.61 | 0.5 | 22.54% (+0.11) | |
| Feb 14, 2025 | 2024 (Q4) | 0.46-1.64 | 0.47 | -449.25% (-2.11) | |
| Oct 11, 2024 | 2024 (Q3) | 0.761.02 | 1.11 | -8.18% (-0.09) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
