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MTY Food Group (MTY) investor relations material
MTY Food Group Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 2025 marked a return to profitability with net income attributable to owners of CAD 32.1 million (CAD 1.40 per diluted share), reversing a prior loss, mainly due to lower impairments and a one-time CAD 29.5 million gift card breakage income.
19 net new store openings in Q4 2025, resulting in the first annual positive net unit growth since 2013, ending the year with 7,080 locations.
Free cash flow generation was robust, leverage decreased, and the store network is at its healthiest in over a decade.
System sales increased 3% to $1.41 billion, aided by a 53rd week and positive FX, but decreased 2% excluding these effects.
The board's strategic review is ongoing, with no timeline or assurance of outcome provided.
Financial highlights
Normalized Adjusted EBITDA for Q4 was CAD 87.7 million, up 48% year-over-year, driven by a one-time CAD 29.5 million gift card breakage income.
Revenue grew 7% year-over-year to $305.4 million in Q4 2025, driven by US franchise operations and processing, distribution, and retail segments.
Free cash flow, net of lease payments, was CAD 37.7 million, up 38% year-over-year.
Quarterly dividend was raised by 12% to CAD 0.37 per share, paid February 13, 2026.
Ended the quarter with net debt of approximately CAD 580 million and a debt to EBITDA ratio of about 2x.
Outlook and guidance
Management expects continued strong free cash flow into 2026, supported by lower CapEx.
Franchisee EBITDA growth is expected to outpace same-store sales growth.
Anticipates improvement in store opening pace, with strong demand for larger brands.
Expects stable normalized adjusted EBITDA margins, with potential fluctuations in corporate store margins.
Strategic initiatives focus on menu innovation, product quality, and customer experience enhancements.
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