MTY Food Realizes Second Quarter Profits, Reinstates Dividend; Stocks gain almost 15%


MTY Food Group shares (MTY) gained nearly 15% at the start of trading on Friday after the company reported second-quarter profit and said it would resume paying dividends. MTY is behind more than 80 restaurant brands, including well-known restaurant brands like Thai Express, Extreme Pita, and Tiki-Ming.

Revenue reached C $ 135.9 million for the quarter ended May 31, an increase of 39% from C $ 97.8 million in the previous year quarter.

Meanwhile, net income attributable to shareholders amounted to C $ 23 million (C $ 0.93 per share) in the second quarter of 2021, up from a net loss of C $ 99.1 million ( – CA $ 4.01) in the second quarter of 2020.

The franchisor and restaurant operator, which suspended its dividend last year when the pandemic forced restaurants to close, said it will pay a quarterly dividend of C $ 0.185 per share next month.

MTY CEO Eric Lefebvre said: “We are extremely pleased to note that Adjusted EBITDA for the quarter more than doubled from last year to $ 43.5 million despite the lingering impact. pandemic, making it one of our best quarters ever. recovery in Canada as well as organic growth of $ 15.3 million in the US and international segment. This resulted in strong cash flow from operating activities of $ 29.5 million. This allowed us to further reduce our debt level by $ 15 million, bringing total repayments since the start of the pandemic to nearly $ 145 million. “

MTY said that at the end of the quarter, 359 locations were still temporarily closed due to the pandemic, including 283 in Canada, 54 in the United States and 22 internationally. The company said 258 locations were still temporarily closed as of Friday, July 9. (See MTY Food Group stock charts on TipRanks)

Last week, National Bank Financial analyst Vishal Shreedhar maintained a holding rating on MTY with a target price of C $ 58.00. This implies a potential decline of 7.5%.

Overall, the consensus among Wall Street analysts is that MTY is a moderate buy based on 2 buy and 5 take. MTY Food Group’s average price target of CA $ 59.37 implies downside potential of 5.3% from current levels.

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