MTY Food Group (MTY) AI Stock Analysis

• Market Cap: $998.13M
• Dividend Yield: 2.66%
• Average Volume (3M): 56.00K
• Price to Earnings (P/E): 141.8
• Beta (1Y): 0.88
• Revenue Growth: 0.33%
• EPS Growth: -92.77%
• Country: CA
• Employees: 7,632
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Restaurants
• EPS (TTM): 0.87
• Shares Outstanding: 22,998,362
• 10 Day Avg. Volume: 31,952
• 30 Day Avg. Volume: 55,998
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $49.46
• Price Target Upside: 10.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

MTY Food Group demonstrates strong cash flow generation and operational efficiency, supporting a stable financial position. However, challenges such as a high P/E ratio, thin net margins, and net location closures weigh on the stock's attractiveness. Technical indicators point to some momentum, but the stock's price is significantly above average valuation metrics. While there is potential for growth through digital sales and a strong new store pipeline, overvaluation concerns and operational hurdles suggest a cautious outlook.

MTY Food Group Business Overview & Revenue Model

Company Description

MTY Food Group Inc. is a Canadian-based franchisor in the quick-service restaurant (QSR) industry, operating a diverse portfolio of restaurant brands across North America and internationally. The company manages a wide array of brands spanning multiple sectors, including fast food, casual dining, and takeout service. MTY's core products and services revolve around offering a variety of cuisines, such as Asian, Mexican, and Italian, through its numerous franchise locations.

How the Company Makes Money

MTY Food Group primarily makes money through franchise fees and royalties collected from its franchisees. The company generates revenue by charging initial franchise fees to new restaurant owners and ongoing royalties based on a percentage of each franchise's sales. Additionally, MTY benefits from supply chain agreements, where it may receive income from distributing food and other products to its franchise locations. The company's growth is bolstered by strategic acquisitions, expanding its brand portfolio and increasing market presence, and by maintaining strong relationships with franchisees to ensure brand consistency and customer satisfaction.

MTY Food Group Financial Statement Overview

Summary

MTY Food Group demonstrates strong operational efficiency, with healthy EBIT and EBITDA margins. However, the decline in net profit margin and revenue growth raises concerns. The high debt-to-equity ratio suggests significant leverage, though cash flow metrics reveal solid cash generation capabilities. Overall, the company exhibits potential for growth but faces challenges in managing financial leverage and improving revenue.

Income Statement

The income statement shows a stable gross profit margin at 33.53% TTM, with an EBIT margin of 23.58% indicating strong operational efficiency. However, the net profit margin decreased to 2.08% TTM, reflecting potential issues in managing non-operational costs. Revenue growth is declining, with a decrease from the previous year, which is a concern.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.52, which indicates significant leverage and potential financial risk. However, the equity ratio is stable at 31.01%, suggesting a reasonable balance between equity and assets. ROE stands at 3.01% TTM, showing limited efficiency in generating returns from equity.

Cash Flow

The cash flow statement highlights a strong operating cash flow to net income ratio of 8.48, indicating robust cash generation relative to net income. Free cash flow grew by 16.42% over the previous year, suggesting effective capital management. However, free cash flow to net income is high, indicating reliance on cash flow to sustain net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.16B	1.17B	716.52M	551.90M	511.12M
	Gross Profit
419.18M	340.98M	255.40M	300.62M	276.61M
	EBIT
171.22M	181.25M	133.58M	124.17M	81.83M
	EBITDA
165.34M	263.02M	165.60M	169.80M	14.65M
	Net Income Common Stockholders
24.17M	104.08M	74.82M	85.64M	-36.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
50.41M	58.90M	59.48M	61.23M	44.30M
	Total Assets
2.59B	2.68B	2.33B	1.90B	2.01B
	Total Debt
1.22B	1.30B	1.08B	834.28M	1.02B
	Net Debt
1.17B	1.24B	1.02B	773.04M	974.99M
	Total Liabilities
1.78B	1.87B	1.60B	1.26B	1.43B
	Stockholders Equity
801.84M	811.41M	723.41M	647.64M	581.75M
Cash Flow		Free Cash Flow
177.08M	152.42M	130.14M	132.54M	128.03M
	Operating Cash Flow
204.81M	184.59M	142.80M	139.30M	133.65M
	Investing Cash Flow
-23.54M	-319.66M	-258.42M	7.20M	-12.11M
	Financing Cash Flow
-186.78M	135.94M	105.30M	-129.58M	-126.37M

MTY Food Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTY, the sentiment is Positive. The current price of 44.64 is above the 20-day moving average (MA) of 41.72, above the 50-day MA of 41.97, and below the 200-day MA of 44.67, indicating a neutral trend. The MACD of 0.70 indicates Negative momentum. The RSI at 66.17 is Neutral, neither overbought nor oversold. The STOCH value of 90.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MTY.

MTY Food Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PZA	77 Outperform	$477.18M	15.27	10.29%	6.32%	-1.02%	-1.76%
MTY	68 Neutral	$998.13M	141.76	1.11%	2.66%	0.33%	-92.77%
Sector *	61 Neutral	$6.59B	11.77	3.06%	3.98%	2.56%	-20.85%
FOOD	44 Neutral	C$14.24M	―	11.42%	―	-13.66%	-25.60%
ODD	38 Underperform	C$22.15M	―		―	-3.24%	42.46%

MTY Food Group Corporate Events

MTY Food Group Announces 2025 AGM Results

MTY Food Group Inc. held its 2025 Annual General Meeting, where shareholders voted on several key issues. All director nominees were elected, and PricewaterhouseCoopers was reappointed as auditor. Shareholders approved the executive compensation approach but rejected proposals for an independent board chair, a food waste transparency report, and a roadmap for switching to cage-free eggs, indicating a preference for the current management and operational strategies.

Spark’s Take on TSE:MTY Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTY is a Neutral.

MTY Food Group’s stock score reflects a balance of strong operational efficiency and cash flow generation against challenges in revenue growth and high valuation metrics. The company’s resilience in adverse conditions and strategic initiatives in digital sales and expansion offer potential upside, but the high P/E ratio and bearish technical indicators present cautionary signals.

To see Spark’s full report on TSE:MTY stock, click here.

MTY Food Group Shows Resilience with Q1 2025 Financial Results

MTY Food Group reported a slight increase in normalized adjusted EBITDA for the first quarter of fiscal 2025, reaching $60.2 million. Despite challenges such as adverse weather affecting its US frozen treats segment, the company maintained stable same-store sales and plans to expand its footprint in the coming quarters. The company also emphasized its strong free cash flow growth and strategic share repurchases as part of its capital management strategy.

Spark’s Take on TSE:MTY Stock

According to Spark, TipRanks’ AI Analyst, TSE:MTY is a Neutral.

MTY Food Group shows strengths in operational efficiency and cash flow generation, coupled with a commitment to shareholder returns through dividends. However, significant leverage, declining revenue growth, and recent impairment charges pose risks. The technical outlook is currently bearish, and valuation metrics suggest the stock may be overvalued. Despite these challenges, strategic initiatives like digital sales expansion and net positive location growth offer potential upside.

To see Spark’s full report on TSE:MTY stock, click here.

MTY Food Group to Discuss Q1 Results in Upcoming Conference Call

MTY Food Group Inc. announced it will hold a conference call on April 11, 2025, to discuss its first-quarter results. This event is significant for analysts and investors as it provides insights into the company’s financial performance and strategic direction, potentially impacting stakeholder decisions.

MTY Food Group Reports Stable Q4 2024 Amid Expansion

MTY Food Group reported stable financial performance in Q4 2024, with normalized adjusted EBITDA remaining relatively steady at $59.4 million and system sales increasing by 2% due to organic growth. The company opened 13 new locations, emphasizing the strength of its franchising segment with an 8% increase in normalized adjusted EBITDA. Despite these positive trends, MTY experienced a net loss attributable to owners of $55.3 million, contrasting with a profit in the same quarter of the previous year. Key activities included repurchasing shares and making debt repayments, indicating ongoing efforts to manage financial obligations and shareholder value.