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Bullboard - Stock Discussion Forum MTY Food Group Inc MTYFF


Primary Symbol: T.MTY

MTY Food Group Inc. is a Canada-based franchisor and operator of multiple restaurant concepts worldwide. The Company franchises and operates quick-service, fast casual and casual dining restaurants under more than 90 different banners in Canada, the United States and Internationally. Its activities consist of franchising and operating corporate-owned locations as well as the sale of retail... see more

TSX:MTY - Post Discussion

MTY Food Group Inc > Expansion and organic growth
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Post by SwissBanker96 on Feb 25, 2022 4:38am

Expansion and organic growth

The franchisors under the MTY Food Group operates multiple restaurant concepts globally. Last year was challenging, yet the group posted a record-high adjusted EBITDA. The $1.36 billion company also reported $85.63 million in net income in fiscal 2021 (year ended November 30, 2021) compared to the $37.1 million net loss in fiscal 2020.

In Q4 fiscal 2021, management reported 8%, 15%, and 23.9% growths in system sales, revenue, and net income versus Q4 fiscal 2020. Digital sales likewise increased 26.3% year over year. The $803.6 million digital sales represent 23% of system sales in 2021. According to management, the ongoing pandemic accelerated consumer shifts to online ordering for delivery and take-out.

Eric Lefebvre, MTY’s CEO, said, “We generated healthy free cash flows and profitability, highlighted by record adjusted EBITDA of $168.6 million in 2021.”  Lefebvre cited the strength of the business model and resiliency of the franchisees for the robust financial results that further improved the balance sheet.

Other quarterly highlights include the dividend payout, the repurchase of shares, and debt repayment to reduce long-term debt. MTY remains focused on its long-term growth strategy to deliver organic growth. Investments in its network for growth and potential accretive acquisitions depends on market recovery.

According to management, the individual success of franchisees is the basis for the success of MTY for the years to come. Furthermore, the diversified revenue sources allow expansion into other sales channels, such as the launching multiple ghost kitchens in existing restaurant locations.

MTY trades at $53.41 per share and pays a modest 1.57% dividend. Analysts covering the stock see an upside potential between 28.3% and 45.1% in one year.

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