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Highlights

  • MTY Food Group recorded a massive 88% growth in its revenue to CAD 305.2 million in the second quarter of the year 2023.
  • MTY’s net income jumped to CAD 30.4 million during the reporting period, up 8.9% as compared to CAD 28.7 million in pcp.
  • There has been around 39% YoY surge in system sales to a record-high CAD 1.5 billion in Q2 2023.

A franchisor in the quick service and casual dining food industry, MTY Food Group Inc (TSX: MTY) is involved in operating corporate-owned locations and sale of retail products across Canada and the United States.

In the second quarter of the year 2023, the company recorded a massive 88% growth in its revenue to CAD 305.2 million, versus CAD 162.5 million in Q2 2022. As per the company, the high growth in revenue was mainly because of healthy contributions from the recent acquisitions. Also, MTY’s net income jumped to CAD 30.4 million during the reporting period, up 8.9% as compared to CAD 28.7 million in pcp.

Furthermore, there has been around 39% year-on-year surge in system sales to a record-high of CAD 1.5 billion in Q2 2023. Following the successful acquisitions of BBQ Holdings in Q4 2022 and Wetzel's Pretzels and Sauce Pizza and Wine in Q1 2023, the United States registered a 63% year-over-year growth in sales.

In Q2 2023, the company’s free cash flows rose by 78% to CAD 45.1 million, against CAD 25.3 million in Q2 2022.

Overall, the company secured a net income of CAD 30.4 million, an increase of 5.9% as compared to CAD 28.7 million in pcp.

Top 10 Shareholders

Around 38.47% of the total shareholding in the company is held by its top ten shareholders. While Ma (Stanley) holds approximately ­­­13.01% stake in the company, Fidelity Management & Research Company LLC owns over 8% shareholding.

 

Stock Price Performance
The company’s stock price has dropped by 6.55% in last one month. It has witnessed an increase of about 3.80% over the last three months. The stock’s 52-week high and 52-week 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 20, 2023. The reference data in this report has been partly sourced from EODHD/Others.