TSX Trading Symbol: "MTY"
MONTREAL, Oct. 5, 2016 /PRNewswire/ - MTY Food Group Inc.
("MTY" or the "Company") (TSX: MTY) announced today that pursuant to the announcement made on September 9,
2016, that one of its wholly-owned subsidiaries has acquired all of the equity interest of BF Acquisition Holdings, LLC.
("BFAH") (www.bajafresh.com and www.lasalsa.com).
The total consideration for the transaction is approximately US$27.0 million paid in cash at
closing, financed using MTY's existing credit facilities.
At closing, BFAH operates 160 Baja Fresh Mexican Grill and 23 La Salsa Fresh Mexican Grill restaurants, generating annual
system sales of approximately US $145 million. Of the 183 restaurants in operations, 16 are
corporately-owned and 167 are franchised.
Within the next 30 days, BFAH's head office will be moved in MTY's office in Scottsdale,
Arizona.
Non‑IFRS Measures
This News Release makes reference to certain non‑IFRS measures. These measures are not recognized measures under IFRS, do
not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by
other companies. Rather, these measures are provided as additional information to complement those IFRS measures by
providing further understanding of the Company's results of operations from management's perspective. Accordingly, they
should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under
IFRS. The Company uses non-IFRS measures including "System Sales" to provide investors with supplemental measures of its
operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on
IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties
frequently use non-IFRS measures in the evaluation of issuers. The Company's management also uses non-IFRS measures in order
to facilitate operating performance comparisons from period to period, to prepare annual operating budgets, and to determine
components of management compensation.
"System Sales" represents the net sales received from restaurant guests at both corporate and franchise restaurants including
take-out and delivery customer orders. System Sales includes sales from both established restaurants as well as new
restaurants. Management believes System Sales provides meaningful information to investors regarding the size of MTY's
restaurant network, the total market share of the Company's brands and the overall financial performance of its brands and
restaurant owner base, which ultimately impacts MTY's consolidated financial performance.
Forward looking information
Certain information in this News Release constitutes "forward-looking" information that involves known and unknown risks,
uncertainties, future expectations and other factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievements expressed or implied by such
forward-looking information. When used in this News Release, this information may include words such as "anticipate",
"estimate", "may", "will", "expect", "believe", "plan" or variations of such words and phrases, or by the use of words or phrases
which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this
News Release contains forward-looking information regarding: the expected system sales of the combined entity; potential growth
of the Company's US and international operations; the potential impact of the BFAH acquisition on the Company and its
shareholders; and the location of MTY's US operations. This forward-looking information reflects current expectations and
assumptions regarding future events and operating performance and speaks only as of the date of this News Release. These
assumptions include, but are not limited to: currency exchange rates used to derive Canadian dollar expectations; market
acceptance of the BFAH acquisition; future results of BFAH's business and operations meeting or exceeding historical results; the
success of the integration of BFAH's operations with the Company's operations and business; and market acceptance of potential
future acquisitions by the Company. Forward-looking information is subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking information. Such risks and other factors may include,
but are not limited to: currency exchange rates, general business, economic, competitive, political, capital market and social
conditions and uncertainties; the intensity of competitive activity, and the resulting impact on our ability to attract
customers' disposable income; our ability to secure advantageous locations and renew our existing leases at sustainable rates;
the arrival of foreign concepts; our ability to attract new franchisees; changes in customer tastes, demographic trends and in
the attractiveness of our concepts, traffic patterns, occupancy cost and occupancy level of malls and office towers; the level of
consumer confidence and spending and the demand for, and prices of, our products; our ability to implement our strategies and
plans in order to produce the expected benefits; events affecting the ability of third-party suppliers to provide to us essential
products and services; labour availability and cost or the loss of key individuals; stock market volatility; operational
constraints and the event of the occurrence of epidemics, pandemics and other health risks; delay or failure to receive board or
regulatory approvals; changes in legislation affecting the Company; and the timing and availability of external financing on
acceptable terms. Expected system sales could vary due to fluctuations in currency exchange rates.
A description of additional assumptions used to develop such forward-looking information and a description of additional risk
factors that may cause actual results to differ materially from forward-looking information can be found in MTY's disclosure
documents on the SEDAR website at www.sedar.com. Readers are
further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans,
intentions or expectations upon which they are placed will occur. Forward-looking information contained in this News Release
is expressly qualified by this cautionary statement. Except as required by law, the Company assumes no obligation to update
or revise forward-looking information to reflect new events or circumstances. Financial outlooks contained in this News
Release were approved by management of the Company on October 5, 2016. The purpose of this
information is to provide a potential financial outlook of the combined entity and this information may not be appropriate for
other purposes. Additional information is available in the Company's Management Discussion and Analysis, which can be found
on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of
MTY Food Group Inc.
_____________________________________
Stanley Ma, Chairman, President & CEO
SOURCE MTY Food Group Inc.