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Highlights

  • MTY Food Group’s revenue grew to CAD 305.2 million with 88% growth against CAD 162.5 million in Q2 2022.
  • There has been an 8.9% surge in the net income to CAD 30.4 million in Q2 2023, as compared to CAD 28.7 million in Q2 2022.

A franchisor in the quick service and casual dining food industry, MTY Food Group Inc (TSX: MTY) is involved in franchising and operating corporate-owned locations and sale of retail products under a multitude of banners. MTY has its operations based in Canada, the US and other regions.

During the second quarter of 2023, the firm’s revenue grew to CAD 305.2 million with 88% growth against CAD 162.5 million in Q2 2022. The jump in top-line business has been mainly because of the major contribution from the recent acquisitions. Also, there has been an 8.9% surge in the net income to CAD 30.4 million in Q2 2023, as compared to CAD 28.7 million in the previous corresponding period. MTY’s free cash flows also increased by 78% to CAD 45.1 million during Q2 2023 versus CAD 25.3 million in pcp.

During the reporting period, the company’s system sales saw approximately 39% year-on-year growth to a record-high of CAD 1.5 billion. Notably, MTY registered 63% year-over-year increase in the contributions from the United States, following the acquisitions of BBQ Holdings, Wetzel's Pretzels and Sauce Pizza and Wine.

Top 10 Shareholders

A total of 38.86% of the company’s shareholdings are held by its top ten shareholders. While Ma (Stanley) holds around ­­­13.01% of the shares in the company, Fidelity Management & Research Company LLC owns approximately 8.65%.

Stock Price Performance
The stock has gained more than 0.85% in past one month. It has increased by more than 10% over the last three months. The stock’s 52-week high and low price stand at CAD 73.50 and CAD 49.50, respectively.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 6, 2023. The reference data in this report has been partly sourced from EODHD/Others.