MTY Food Group Profits Slip as Consumer Spending Stalls

Revenue for the period ended August 30 dropped to 277.7 million Canadian dollars from 299 million a year prior. While system-wide sales held steady at 1.5 billion Canadian dollars, the company’s bottom line took a hit, falling to 1.08 Canadian dollars per share compared to 1.22 Canadian dollars in the same quarter last year. The U.S. market proved particularly difficult, recording the sharpest decline in performance across the network.

Chief Executive Eric Lefebvre pointed to a challenging economic environment where pressure on household budgets is stifling demand for quick-service dining. To mitigate further losses, the company shuttered 50 locations during the third quarter. This move is part of a broader strategy to shrink the network by 1%, with additional closures slated for the final quarter of the year. Despite the earnings miss, adjusted profit reached 1.26 Canadian dollars per share, surpassing analyst expectations of 1.19 Canadian dollars.