By Montreal, Canada – MTY Food Group, the Canadian franchiser and operator of casual dining and quick-service restaurants, has announced an increase in profit for its fiscal second quarter, surpassing expectations of a decline. The company’s strong sales performance also contributed to better-than-expected revenue.
Impressive Financial Results
MTY Food Group reported net income of 30.4 million Canadian dollars ($22.9 million), or C$1.24 a share, for the period ended May 31. This represents a significant increase from the same quarter of the previous year, when the company recorded net income of C$28.6 million, or C$1.17 a share. Analysts had predicted a decline to C$0.99, according to FactSet.
Furthermore, MTY Food Group’s revenue soared by 88% to C$305.2 million from C$162.5 million. Although analysts forecasted an increase in revenue, the actual growth surpassed expectations, as analysts predicted revenue of C$282 million for the quarter.
Key Contributors to Success
MTY Food Group acknowledges the contributions of its top brands in driving its impressive financial results. BBQ Holdings, Wetzel’s Pretzels, and Sauce Pizza and Wine were instrumental in supporting the company’s overall growth.
Record System Sales and Improved Same-Store Sales
The company achieved a record high in system sales, which increased by 39% year-over-year, reaching C$1.47 billion. Additionally, same-store sales experienced improvement across all locations, rising by 5% compared to the previous year.
Expansion and Closure Activity
During the quarter, MTY Food Group expanded its network by opening 73 new locations. However, it also made the strategic decision to close 77 locations.
CEO Highlights Growth Momentum
Eric Lefebvre, Chief Executive Officer of MTY Food Group, attributed the company’s growth momentum to the successful integration of recent acquisitions in the U.S. In addition, he emphasized the internal strength demonstrated by new locations and the noteworthy 5% year-over-year increase in same-store sales.
Comments