GAAP Measures:
Segment profits were $59.9 million during the 13 week period ended May 31, 2026 (the "second quarter"), a decrease of $9.4 million compared to the same period in 2025.
Impairment charge on right-of-use assets of $7.5 million during the 13 week period as a result of management's decision to close 68 of its corporate locations in the coming months.
Net income attributable to owners decreased to $15.4 million, or $0.67 per diluted share compared to $57.3 million, or $2.49 per diluted share in Q2-25.
Cash flows provided by operating activities increased 25% or $8.7 million to $43.0 million compared the same period in 2025.
Long-term debt repayments of $15.7 million during the 13 week period with net repayments of $77.5 million since Q2-25.
Management Key Performance Indicators:
6 net store openings during the 13 week period.
Normalized adjusted EBITDA(1) of $60.2 million during the 13 week period, a decrease of $9.8 million compared to the same period in 2025.
Adjusted earnings per share(1) of $0.97 per diluted share compared to $1.17 in the same period in 2025.
Free cash flows net of lease payments(2) were $32.2 million or $1.41 per diluted share.
System sales(3) were $1.4 billion during the second quarter.
Same stores sales(3) decreased by 2.1% during the second 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" found at the end of this press release. |
(3) | See section "Definition of non-GAAP ratios" found in the Supplemental Information section for definition. |
MONTREAL, July 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 13 week period of 2026 ended May 31, 2026 and declares a quarterly dividend of 37.0¢ per share, payable on August 14, 2026 to shareholders registered in the Company's records at the end of the business day on August 4, 2026.
"Our second quarter results reflected continued pressure on consumer spending and a challenging operating environment," said Eric Lefebvre, Chief Executive Officer of MTY. "Despite these headwinds, our asset-light and diversified model continued to generate strong free cash flow from operations, and we remained focused on executing against our development pipeline, with positive store openings progressing in line with our plans and a strong slate of openings expected through the balance of the year."
"We are also taking decisive action to improve the quality and profitability of our corporate store portfolio. Following a detailed store-by-store review, we have made the decision to close 68 underperforming corporate-owned locations over the next nine months. This is a decisive step to address underperforming assets and improve the overall quality of our corporate store portfolio. While this action will reduce our store count in the near term, we believe it will strengthen the business over the long term by reducing losses and allowing us to focus resources on our strongest opportunities. We remain committed to disciplined execution, strong cash generation and creating long-term value for shareholders."