MTY Food Group (MTY) AI Stock Analysis

• Market Cap: $783.92M
• Dividend Yield: 3.64%
• Average Volume (3M): 100.00K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.12
• Revenue Growth: 1.38%
• EPS Growth: -64.10%
• Country: CA
• Employees: 7,632
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.19
• Shares Outstanding: 22,841,360
• 10 Day Avg. Volume: 166,844
• 30 Day Avg. Volume: 100,002
• PEG Ratio: -0.62
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 6.45
• Enterprise Value/Market Cap: 2.52
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 5.66
• Enterprise Value/Ebitda: 10.90
• 1Y Price Target: $42.75
• Price Target Upside: 22.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: C$37.00 ▲(6.08% Upside)

MTY Food Group's overall stock score reflects strong financial performance, particularly in cash flow generation, but is tempered by high leverage and moderate profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages. Valuation metrics suggest potential overvaluation, although the dividend yield offers some appeal. The earnings call highlighted both growth opportunities and operational challenges, contributing to a mixed outlook.

MTY Food Group Business Overview & Revenue Model

Company Description

MTY Food Group Inc. franchises and operates quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and internationally. The company also sells retail products under a multitude of banners. As of November 30, 2021, the company had 6,719 locations comprising 6,603 franchised, 23 joint ventures, and 93 corporate locations. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in July 2003. MTY Food Group Inc. was founded in 1979 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

MTY Food Group primarily generates revenue through a combination of franchise fees, royalties, and direct sales from its company-operated locations. Franchise fees are charged to franchisees for the rights to use MTY's brand and operational systems, which typically include an initial franchise fee and ongoing royalty payments based on sales. Additionally, MTY earns revenue from the direct operation of its own restaurants, which contributes to its overall sales figures. The company also benefits from economies of scale through purchasing and supply chain efficiencies, allowing it to negotiate favorable terms with suppliers. Strategic partnerships with various food suppliers and service providers further bolster its revenue streams, while the continuous expansion of its brand portfolio through acquisitions helps to diversify income sources and increase market presence.

MTY Food Group Financial Statement Overview

Summary

MTY Food Group exhibits solid financial health with strong cash flows and operational efficiency, despite challenges in revenue growth and thin net margins. The balance sheet shows manageable leverage, but profitability metrics indicate room for improvement.

Income Statement

MTY Food Group demonstrates a strong gross profit margin of 36.7% and a net profit margin of 0.74% for TTM (Trailing-Twelve-Months), indicating operational efficiency but thin profitability. EBIT margin at 26.3% shows robust core earnings capability. However, revenue growth has been modest, with a slight increase in TTM compared to previous annual reports, suggesting limited top-line expansion.

Balance Sheet

The company's debt-to-equity ratio of 1.49 indicates a moderate level of leverage, which is common in the restaurant industry but could pose risks if not managed well. Return on equity is relatively low at 1.05% for TTM, reflecting limited profitability. However, the equity ratio of 31.2% suggests a stable capital structure, providing some financial stability.

Cash Flow

MTY Food Group's cash flow performance is robust with a high operating cash flow to net income ratio of 24.34 for TTM, indicating strong cash generation relative to net earnings. Free cash flow growth has been consistent, reinforcing financial flexibility. However, the free cash flow to net income ratio of 21.48 suggests strong cash conversion, supporting strategic investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.16B	1.17B	716.52M	551.90M	511.12M
Gross Profit	348.42M	419.18M	340.98M	255.40M	300.62M	276.61M
EBITDA	180.95M	165.34M	263.02M	165.60M	169.80M	14.65M
Net Income	38.62M	24.17M	104.08M	74.82M	85.64M	-36.90M
Balance Sheet
Total Assets	2.51B	2.59B	2.68B	2.33B	1.90B	2.01B
Cash, Cash Equivalents and Short-Term Investments	47.20M	50.41M	58.90M	59.48M	61.23M	44.30M
Total Debt	1.17B	1.22B	1.30B	1.08B	834.28M	1.02B
Total Liabilities	1.72B	1.78B	1.87B	1.60B	1.26B	1.43B
Stockholders Equity	794.20M	801.84M	811.41M	723.41M	647.64M	581.75M
Cash Flow
Free Cash Flow	186.47M	177.08M	152.42M	130.14M	132.54M	128.03M
Operating Cash Flow	209.03M	204.81M	184.59M	142.80M	139.30M	133.65M
Investing Cash Flow	-20.65M	-23.54M	-319.66M	-258.42M	7.20M	-12.11M
Financing Cash Flow	-188.72M	-186.78M	135.94M	105.30M	-129.58M	-126.37M

MTY Food Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MTY, the sentiment is Negative. The current price of 34.88 is below the 20-day moving average (MA) of 36.81, below the 50-day MA of 37.89, and below the 200-day MA of 41.68, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	C$530.32M	16.88	10.14%	5.82%	-0.26%	-2.48%
MTY	63 Neutral	$783.92M	24.42	3.64%	3.64%	1.38%	-64.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FOOD	48 Neutral	C$30.00M	―	―	―	-16.73%	-78.61%
ODD	41 Neutral	C$8.86M	―	―	―	-2.40%	9.13%

MTY Food Group Corporate Events

MTY Food Group’s Mixed Earnings Call Highlights Growth and Challenges

MTY Food Group’s recent earnings call presented a mixed outlook, highlighting both achievements and challenges. The company reported a net gain in store locations and progress in digital and ERP initiatives, yet faced hurdles with same-store sales and the performance of Papa Murphy’s. Additionally, a decline in net income and increased operating expenses posed challenges, although growth in the Food Processing, Distribution, and Retail segment offered some positive momentum.

MTY Food Group Reports Mixed Q3 2025 Results

MTY Food Group Inc., a leading franchisor and operator of multiple restaurant concepts worldwide, has reported its third-quarter financial results for fiscal 2025, showcasing its extensive presence in the quick-service, fast casual, and casual dining sectors.

MTY Food Group Schedules Q3 Results Conference Call

MTY Food Group Inc, a company listed on the Toronto Stock Exchange under the symbol MTY, has announced a conference call to discuss its third-quarter results. The call is scheduled for October 10, 2025, and will be accessible to analysts, investors, and other interested parties. The third-quarter results will be published before the call, providing stakeholders with insights into the company’s financial performance. This announcement is significant as it offers an opportunity for stakeholders to engage with the company’s management and gain a deeper understanding of its current market position and future prospects.

The most recent analyst rating on (TSE:MTY) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on MTY Food Group stock, see the TSE:MTY Stock Forecast page.