Canada · Delayed Price · Currency is CAD MTY Food Group Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw continued negative same-store sales and lower profitability, but free cash flow improved and net debt declined. Decisive action was taken to close 68 underperforming corporate stores, mainly Papa Murphy's, to enhance long-term profitability. Store openings are expected to accelerate in H2 2026.
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Q1 2026 saw a 2.5% same-store sales decline amid macro headwinds, but early Q2 trends are improving. EBITDA was stable year-over-year, with strong digital sales and a robust new store pipeline supporting a positive outlook for 2026.
Fiscal Year 2025
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Q4 2025 delivered strong free cash flow, a 48% rise in Adjusted EBITDA (boosted by a one-time gift card breakage), and positive net unit growth for the first time since 2013. Same-store sales declined 1.7%, but franchisee profitability remains stable and leverage is down.
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Canadian operations rebounded with 1.4% same store sales growth, while U.S. sales declined 3.8% amid economic headwinds. Normalized adjusted EBITDA fell 5% due to corporate store challenges, but franchising and retail segments posted growth.
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Q1 2025 saw resilient performance with stable same-store sales, 7% digital sales growth, and strong free cash flow. Adjusted EPS rose to CAD 0.87 per share, and over 100 new locations are under construction, supporting future growth.
Fiscal Year 2024
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Strong cash flow and disciplined capital allocation marked fiscal 2024, with record returns to shareholders and positive net store growth. Impairment and FX charges led to a Q4 net loss, but underlying EBITDA and cash flow metrics remained robust.
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Normalized adjusted EBITDA was stable at CAD 71.9 million, with strong U.S. and international growth offsetting Canadian declines. Free cash flow hit a record, digital sales rose, and restructuring efforts improved margins. Net income fell due to impairment and revaluation charges.
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Q2 2024 saw stable system sales with U.S. growth offsetting Canadian declines, while digital sales rose 8% and EBITDA margins remained strong. Capital allocation remains focused on M&A, with a renewed buyback program and stabilized supply chain costs.