MTY Food Group (MTY) reported higher sales and profits in its fiscal third quarter. MTY owns more than 80 restaurant brands, including well-known food court brands like Baja Fresh and Tiki-Ming.
Revenue came in at C$150.8 million in the three months ended August 31, an increase of 11.4% from C$135.4 million in the prior-year quarter. System sales rose 13% to C$1 billion. They were up 29% in Canada, 5% in the U.S. and 7% internationally.
Net income attributable to shareholders amounted to C$24.3 million (C$0.98 per share) in Q3 2021, up from C$22.9 million (C$0.93) in Q3 2020.
The franchisor and restaurant operator restored its quarterly dividend in the quarter with a payment of C$0.19 per share on August 13.
MTY CEO Eric Lefebvre said, “This strong financial performance reflects a rebound in customer traffic for many of our brands. It was realized in a difficult context of lingering supply-chain issues, [labor] shortages and the continuing impact of the COVID-19 pandemic, as shown by the business days lost due to temporary closures (19,300).”
MTY said that at the end of the quarter, 164 locations were still temporarily closed due to the pandemic, including 118 in Canada, 16 in the U.S., and 30 internationally. The company said 139 locations are still temporarily closed as of October 8, 2021. (See Insiders’ Hot Stocks on TipRanks)
On October 7, RBC Capital analyst Sabahat Khan maintained a Hold rating on MTY and raised its price target to C$62 (from C$52). This implies 11.1% downside potential.
Overall, consensus among Wall Street analysts is that MTY is a Moderate Buy, based on two Buys and three Holds. The average MTY Food Group price target of C$67.61 implies 3.1% downside potential to current levels.
Related News:
Couche-Tard Q1 Revenue Rises 40%, Beats Estimates
good natured Products Inc. Q2 Sales Rise 237%
Cineplex Revenue Almost Triples in Q2
