MTY Food Group (MTY) investor relations material

Executive summary

• Segment profits rose 2% to $73.2 million, while net income attributable to owners fell to $27.9 million ($1.22 per diluted share) from $34.9 million ($1.46 per diluted share) year-over-year.

• Cash flows from operations dropped to $39.0 million from $66.4 million, mainly due to timing of retail segment receivables and higher income taxes paid.

• Net store openings were positive at 15 locations, reversing a net closure of 41 in the prior year; total locations reached 7,061.

• Declared a quarterly dividend of $0.33 per share, payable November 14, 2025.

Financial highlights

• Revenue increased 1% to $297.0 million, driven by growth in processing, distribution, and retail, offset by declines in franchise and corporate segments.

• Normalized adjusted EBITDA rose 3% to $74.0 million, aided by a $5.8 million Employee Retention Credit; excluding this, EBITDA would have declined.

• System sales were steady at $1.46 billion; digital sales grew 1% to $273.4 million, led by an 8% increase in Canada.

• Free cash flows net of lease payments fell to $25.8 million from $49.3 million year-over-year.

• Same-store sales declined 1.6% year-over-year (Canada -0.3%, US -2.5%, International +0.8%).

Outlook and guidance

• Management expects continued margin stability in all segments, with some fluctuations in corporate store margins.

• Anticipates improvement in the pace of new store openings and strong demand for major brands.

• Strategic focus includes menu innovation, product quality, enhanced customer experience, and value proposition.

• Expects strong free cash flows in 2025, supported by lower capex.