In This Article:
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Same-Store Sales: Largely stable after adjusting for leap year impact.
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Digital Sales: Increased by 7%, representing 22% of total sales.
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Net Change in Store Locations: Opened 70 locations, closed 102, resulting in a net decrease of 32 locations.
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Total Locations: 7,047 locations, with 96.4% franchised or under operator agreement.
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Normalized Adjusted EBITDA: $60.2 million, up 1% year-over-year.
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System Sales Growth: 2.5% year-over-year.
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Company Revenue Growth: 2.2% increase year-over-year.
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Free Cash Flow: $43.5 million, up 18% year-over-year.
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Cash Flow from Operating Activities: $58.5 million, up 9% year-over-year.
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Adjusted EPS: $0.87 per diluted share, up from $0.69 in Q1 2024.
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Net Debt: $643.9 million.
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Debt-to-EBITDA Ratio: Approximately 2.5 times.
Release Date: April 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MTY Food Group Inc (MTYFF) demonstrated resilience in the face of challenging weather conditions and macroeconomic headwinds, maintaining stable same-store sales after adjusting for the leap year impact.
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Digital sales increased by 7% in the first quarter, now representing 22% of total sales, reflecting successful investments in enhancing the off-premise customer experience.
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The company opened 70 new locations in Q1, with a strong pipeline of over 100 locations under construction, indicating potential growth in restaurant openings in the upcoming quarters.
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MTY Food Group Inc (MTYFF) continues to generate strong free cash flows, with a 9% year-over-year increase in cash flow from operating activities and an 18% increase in free cash flows net of lease payments.
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The company repurchased nearly 300,000 shares in Q1, demonstrating a commitment to returning value to shareholders through share buybacks and dividends.
Negative Points
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The company experienced a net decrease of 32 locations in Q1, with 102 closures outweighing the 70 openings, highlighting challenges in maintaining net growth.
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Canadian revenues from franchising operations dipped by 2% due to decreases in recurring revenues and turnkey project sales.
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Operating expenses increased in both Canada and the US, driven by higher wages and supply chain costs, impacting overall profitability.
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Income attributable to owners significantly declined to $1.7 million from $17.3 million in Q1 2024, primarily due to foreign exchange variations on intercompany loans.
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The company faces potential risks from tariffs and supply chain disruptions, requiring strategic planning and mitigation efforts to manage potential impacts.