GAAP Measures:
- Segment profits increased by 2% to reach $59.8 million during the quarter.
- Net income attributable to owners increased to $36.9 million, or $1.62 per diluted share compared to $1.7 million, or $0.07 per diluted share in Q1-25.
- Cash flows provided by operating activities of $40.9 million compared to $64.6 million in Q1-25, a change of $23.7 million.
- Long-term debt repayments $17.7 million more than doubled compared to the period in the prior year.
Management Key Performance Indicators:
- Normalized adjusted EBITDA(1) remained steady at $60.1 million in the quarter, compared to $60.2 million in Q1-25.
- Adjusted earnings per share(1) of $0.98 per diluted share, an increase of 13% compared to $0.87 in Q1-25.
- Free cash flows net of lease payments(2) were $29.0 million or $1.27 per diluted share.
- System sales(3) were $1.3 billion for the quarter.
- Same stores sales(3) decreased by 2.5% during the quarter.
| (1) | This is a non-GAAP measure. Please refer to the “Non-GAAP Measures” section at the end of this press release. |
| (2) | See section “Definition of supplementary financial measures” foundat the end of this press release. |
| (3) | See section “Definition of non-GAAP ratios” found in the Supplemental Information section for definition. |
MONTREAL, April 10, 2026 (GLOBE NEWSWIRE) — MTY Food Group Inc. (“MTY”, “MTY Group” or the “Company”) (TSX:MTY), one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported today financial results for its first quarter of fiscal 2026 ended March 1, 2026 and declares a quarterly dividend of 37.0¢ per share, payable on May 15, 2026 to shareholders registered in the Company’s records at the end of the business day on May 5, 2026.
“Our asset-light, well diversified model continues to demonstrate its strong cash flow profile despite persistent macro economic headwinds,” said Eric Lefebvre, CEO of MTY. “Our results in the quarter reflect the depressed consumer sentiment during the period which is starting to show early signs of improvement in March. We continue to navigate this challenging environment, investing where appropriate and demonstrating cost discipline to put the business in a stronger position once consumer demand normalizes and improves.
Same store sales reflect this environment with a headwind of 2.5% as our Canadian operations showed greater resilience than the US and International segments. Our pipeline of store locations remains robust for 2026, with the normal seasonal activity in Q1 of higher closures post the holiday season.
We believe store locations will be a bright spot for 2026, continuing the trend from the second half of 2025. These new store locations are increasingly underpinned by experienced operators choosing to expand their footprint under MTY banners. We believe the strength of our brands and the experience of our team and franchise operators set us up to perform well once the consumer rebound is underway.”
| Financial Highlights
(in thousands of $, except per share information) |
Q1 2026 |
Q1 2025 |
||
| Revenue | 267,765 | 284,792 | ||
| Adjusted EBITDA(1) | 59,817 | 58,450 | ||
| Normalized adjusted EBITDA(1) | 60,140 | 60,190 | ||
| Net income attributable to owners | 36,927 | 1,743 | ||
| Cash flows from operations | 40,903 | 64,605 | ||
| Free cash flows net of lease payments(1) | 28,982 | 49,330 | ||
| Free cash flows net of lease payments per diluted share(2) | 1.27 | 2.12 | ||
| Earnings per share, basic and diluted | 1.62 | 0.07 | ||
| System sales(3) | 1,290,400 | 1,364,800 | ||
| Digital sales(3) | 292,500 | 292,600 | ||
| (1) | This is a non-GAAP measure. Please refer to the “Non-GAAP Measures” section at the end of this press release. |
| (2) | This is a non-GAAP ratio. Please refer to the “Non-GAAP Ratios” section at the end of this press release. |
| (3) | This is a supplementary financial measure. Please refer to the “Supplementary Financial Measures” section at the end of this press release. |
FIRST QUARTER RESULTS
Network
- At the end of the first quarter of 2026, MTY’s network had 7,034 locations in operation, of which 6,786 were franchised or under operator agreements and 248 were corporate-owned. The geographical split among MTY’s locations remained stable year-over-year at 57% in the US, 35% in Canada and 8% International.
- During the first quarter of 2026, MTY’s network opened 52 locations (Q1 2025 – 70 locations) and closed 90 others (Q4 2024 – 102 locations). The company also ended a master franchise licensing agreement with TCBY, leading to an 8 stores location reduction.
- System sales(1) reached $1.3 billion in the first quarter of 2026. The US and International segments experienced an overall sales decrease of 7.1%, while Canada demonstrated resilience with a more modest decrease of 1.7%. Half of the decrease in the US and international segments was the result of foreign exchange variation.
- Same-store sales(1) decreased 2.5% year-over-year in the first quarter. By region, Canada remained relatively stable with a modest 0.8% decrease, while the US and International segments recorded declines of 3.6% and 1.3%, respectively.
- Digital sales(1) remained resilient in the first quarter at $292.5 million, including the impact of foreign exchange rates, compared to $292.6 million in Q1-25. Excluding the impact of foreign exchange, Canada delivered strong digital sales growth of 13%, while the US remained steady.
| (1) | This is a supplementary financial measure. Please refer to the “Supplementary Financial Measures” section at the end of this press release. |
Financial
- Company revenue was $267.8 million in the first quarter, a decrease of 6.0%, primarily attributable to lower revenue from corporate stores in the US, while Canada remained resilient, supported by growth in food processing, distribution and retail.
- Net income attributable to owners totaled $36.9 million, or $1.62 per share, in the first quarter compared to $1.7 million, or $0.07 per share, for the same period in 2025. The year-over-year improvement was mainly attributable to a foreign exchange gain related to the revaluation of US-dollar denominated intercompany debt.
- Normalized adjusted EBITDA, which excludes acquisition-related expenses and SAP project implementation costs, remained steady year-over-year to reach $60.1 million in the first quarter of 2026 positively impacted by a $5.5 million Employee Retention Credit related to 2020 – 2022 fiscal year received from the US government
Calculation of Adjusted EBITDA (1) and Normalized adjusted EBITDA (1)
| (In thousands $) | Q1 2026 | Q1 2025 | ||
| Income before taxes | 46,085 | 494 | ||
| Depreciation – property, plant and equipment and | 13,687 | 14,902 | ||
| Amortization – intangible assets | 7,920 | 8,314 | ||
| Interest on long-term debt | 7,163 | 9,129 | ||
| Net interest expense on leases | 2,539 | 2,838 | ||
| Impairment charge – right-of-use assets | 287 | 290 | ||
| Impairment charge – property, plant and equipment and intangible | — | 435 | ||
| Unrealized and realized foreign exchange (gain) loss | (16,889 | ) | 21,460 | |
| Interest income | (65 | ) | (95 | ) |
| Loss (gain) on de-recognition/lease modification of lease | ||||