MTY Food Group to Shutter 68 Stores After Profit Slump

The company expects these closures to incur restructuring costs between C$10 million and C$12 million, impacting free cash flow in the near term. This decision follows a difficult second quarter marked by inflation and rising energy costs, which suppressed discretionary dining. Revenue dropped to C$279.9 million from C$304.9 million in the prior-year period, missing analyst projections as same-store sales slipped 2.1%.

Chief Executive Eric Lefebvre noted that the results highlight ongoing pressure on household budgets. System-wide sales, covering both franchised and corporate sites, fell to C$1.41 billion. Net income saw a significant contraction, plummeting to C$15.4 million from C$57.3 million, while adjusted earnings of C$0.97 per share also failed to meet market expectations.