MTY Food Group Inc., the Canadian franchiser and operator of casual dining and quick-service restaurants, has announced its financial results for the third quarter. The company reported a better-than-expected increase in both profit and revenue, thanks to the success of recent acquisitions.
Profit and Revenue Surge
MTY Food Group’s net income for the quarter reached 38.9 million Canadian dollars ($28.6 million), or C$1.59 a share, compared to C$22.4 million, or C$0.92 a share, in the same period last year. This exceeded analysts’ expectations of C$1.05 a share.
The company’s revenue also saw significant growth, reaching C$298 million compared to C$171.5 million in the previous year. Analysts had forecasted revenue to be around C$292.8 million.
System Sales on the Rise
MTY Food Group benefited from a substantial increase in system sales, which measure the total sales of all outlets that operate under its brands. The company experienced a rise in system sales from C$1.1 billion to C$1.47 billion during the period.
Acquisitions Contribute to Growth
Chief Executive Eric Lefebvre attributed the company’s strong performance to its recent acquisitions. In September of last year, MTY Food Group acquired BBQ Holdings, followed by Wetzel’s Pretzels and Sauce Pizza and Wine in December.
Positive Same-Store Sales Growth
MTY Food Group also reported positive same-store sales growth in both Canada and the U.S. when compared to the same period last year. Sales in Canada increased by 3%, while sales in the U.S. rose by 2%. However, the international segment remained flat.
During the quarter, MTY Food Group opened 87 new locations while closing 92 others. The company is committed to achieving break-even in terms of new restaurant openings.
For more information, please visit the MTY Food Group website.