Mty Food Group Stock Earnings Reports

MTY reported Q1 2026 results in a challenging macro environment with overall same-store sales down 2.5% (Canada -0.8%, U.S. +3.6%). Digital sales remained 23% of total and grew 3% ex-FX (Canada +13%, U.S. flat). The company opened 52 and closed 90 locations in Q1 (including termination of the TCBY agreement), but management says the Q1 closures were anticipated and the new-store pipeline is strong — just under 200 locations are under construction with a large share from existing franchisees. Normalized adjusted EBITDA was $60.1M, in line with prior year; franchise normalized adjusted EBITDA was $43.2M (margins ~48%). Corporate stores EBITDA benefited from a $5.5M U.S. employee retention credit; net income was $36.9M or $1.62 diluted EPS (vs. $1.7M / $0.07 prior year). Cash flow remains strong (free cash flow of $29M net of lease repayments) and net debt was ~ $549M (net debt/EBITDA ~1.9x). Management is focused on digital investments (brand-by-brand, funded largely from advertising funds and internal data science), improved site-selection tools, gradual reduction of corporate-owned stores, and maintaining franchisee economics amid competitive discounting. A strategic review process is underway; no timeline or certainty of any transaction was provided. Management is optimistic about store growth and performance improvement as macro conditions ease.