MTY Reports Fourth Quarter Results for Fiscal 2025

Executive Summary

• MTY Food Group reported a turnaround to profitability in Q4 2025, posting net income of $32.1 M ($1.40 per diluted share) versus a loss of $55.3 M a year earlier.
• Adjusted EBITDA rose 48% YoY to $87.7 M; normalized adjusted EBITDA increased to $87.7 M, driven largely by a one‑time $29.5 M gift‑card breakage adjustment.
• System sales grew 3% to $1.415 B (including a 53rd week effect); same‑store sales declined 1.7% YoY; digital sales rose modestly to $288.8 M.

Key Details

• Revenue: $305.4 M (+7% YoY)
• Adjusted EBITDA (non‑GAAP): $87.3 M vs. $58.8 M in Q4 2024
• Normalized Adjusted EBITDA: $87.7 M vs. $59.4 M in Q4 2024
• Net Income: $32.1 M ($1.40 per diluted share) vs. a loss of $55.3 M YoY
• Operating Cash Flow: $46.2 M (up $2.5 M YoY)
• Free Cash Flow (net of lease payments): $37.7 M (+38% YoY) – $1.65 per diluted share
• Store Network: 7,080 locations at quarter‑end (6,831 franchised, 249 corporate); net addition of 19 stores in Q4 2025.
• System Sales: $1.415 B (+3% YoY, includes 53rd week); excluding 53rd week and FX impact, sales down 2%.
• Same‑Store Sales: –1.7% YoY (Canada flat, US –2.8%, International –3.2%).
• Digital Sales: $288.8 M (+1% YoY; Canada +16%, US –4% due to one brand decline). Digital sales represent 21% of total sales.
• Segment Performance:
• Franchise revenue +30% (gift‑card breakage); normalized adjusted EBITDA $75.1 M vs. $49.3 M prior year.
• Corporate revenue –9%; normalized adjusted EBITDA $7.9 M, margin 7%.
• Processing/distribution/retail revenue +20%; normalized adjusted EBITDA $4.7 M, margin 11%.
• Liquidity: Cash on hand $52.0 M; long‑term debt $632.2 M; revolving credit facility $900 M (drawn CAD$250 M + US$275 M).
• Dividends: Quarterly dividend declared $0.37 per share (12% increase), paid Feb 13 2026.
• Strategic Review: Board initiated a strategic review on Nov 17 2025; financial advisor engaged to evaluate alternatives – process ongoing.

Notable Quotes

“We continued to expand our footprint during the quarter with 19 net new store openings… Despite an unsettled macroeconomic backdrop, our franchisees are navigating these headwinds effectively…” – Eric Lefebvre, CEO

All non‑GAAP measures and definitions are disclosed in the release.