MTY Food Group Inc. (TSX: MTY) is a prominent franchisor and operator of quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and around the world. Established in 1979 and headquartered in Saint-Laurent, Quebec, MTY has grown into a major player with a diversified portfolio of brands. The company operates under numerous banners, offering a wide variety of cuisines and food products, from sushi and burgers to smoothies and poutine. Beyond restaurant operations, MTY also sells retail food products and runs several distribution centers and food processing plants.
Financially, MTY Food Group has maintained a strong track record of revenue growth, driven by a mix of strategic acquisitions and organic expansion. While recent economic volatility, including tariff challenges, has affected the broader market, MTY’s diversified brand portfolio and global reach offer resilience against localized economic disruptions. MTY’s ability to continuously integrate new brands into its operations has contributed significantly to its long-term performance and profitability.
The company’s focus on asset-light franchise models minimizes operating risks while maximizing margins. Its franchise-centric strategy supports consistent cash flow generation and allows MTY to navigate market uncertainties more effectively. Given its robust fundamentals and defensive business model, MTY is a compelling choice for long-term TFSA investors looking for steady growth amid market turbulence.
Stock Performance Analysis: MTY Food Group Inc. (TSX: MTY)
Over the past year, MTY Food Group’s stock has shown moderate volatility, reflecting general market pressures like tariff disruptions and economic uncertainty. Despite these headwinds, MTY has managed to maintain a relatively stable trading range, thanks to its franchise-driven, asset-light model. The company has demonstrated consistent revenue and earnings growth through its strategic acquisitions and international expansion efforts.
Looking forward, MTY’s ability to adapt to changing consumer preferences and integrate new brands efficiently positions it well for future growth. As tariffs and supply chain pressures ease, MTY’s scalable business model and geographic diversity could help it outperform other food service stocks in a recovering economy.
Key Stats: MTY Food Group Inc. (TSX: MTY)
| Code | Name | GIC Sector | Market Cap | Beta | 52-Week High | 52-Week Low | 50-Day MA | 200-Day MA | Shares Short | Short Ratio | Short Percent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MTY | MTY Food Group Inc. | Consumer Discretionary | $1.47B | 0.68 | $68.70 | $45.12 | $56.30 | $57.82 | 312,400 | 3.95 | 0.0194 |
📌 MTY Food Group (TSX: MTY) has shown resilience with a market cap of $1.47 billion and a relatively low beta of 0.68, making it less volatile compared to broader market swings.
📉 MTY Food Group Inc. (TSX: MTY) has experienced significant volatility over the past year, with a 52-week high of $52.80 and a low of $36.79. The stock has recently been trading closer to the lower end of this range, reflecting market pressures in the consumer discretionary sector.
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Peers Comparison: MTY Food Group Inc. (TSX: MTY)
| Code | Name | GIC Sector | Market Cap | Beta | 52-Week High | 52-Week Low | 50-Day MA | 200-Day MA | Shares Short | Short Ratio | Short Percent |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MNS | Royal Canadian Mint – Canadian Silver Reserves | Consumer Discretionary | – | 0.46 | 29.92 | 20.51 | 27.03 | 24.87 | 0 | 0.00 | – |
| ATD | Alimentation Couche-Tard Inc A | Consumer Discretionary | $65.99B | 0.809 | 84.89 | 65.76 | 71.08 | 76.28 | 2,361,471 | 2.39 | – |
| DOL | Dollarama Inc. | Consumer Discretionary | $46.64B | 0.534 | 174.22 | 111.52 | 149.32 | 140.53 | 1,767,411 | 2.24 | 0.0114 |
| QSR | Restaurant Brands International Inc. | Consumer Discretionary | $39.04B | 0.74 | 103.51 | 83.32 | 93.24 | 94.79 | 1,947,698 | 1.44 | 0.007 |
| QSP-UN | Restaurant Brands International Limited Partnership | Consumer Discretionary | $30.19B | 0.57 | 101.66 | 87.11 | 93.45 | 94.94 | 49 | 1.26 | – |
| MG | Magna International Inc. | Consumer Discretionary | $12.71B | 1.727 | 66.51 | 43.25 | 51.77 | 56.88 | 7,217,824 | 3.38 | 0.0257 |
| GIL | Gildan Activewear Inc. | Consumer Discretionary | $8.56B | 1.193 | 78.73 | 43.37 | 68.05 | 65.01 | 1,680,182 | 3.25 | 0.0128 |
| CTC-A | Canadian Tire Corporation Limited | Consumer Discretionary | $8.46B | 1.04 | 168.00 | 122.85 | 147.57 | 151.76 | 1,430,820 | 4.52 | 0.0205 |
| CTC | Canadian Tire Corporation Limited | Consumer Discretionary | $8.46B | 1.04 | 268.92 | 190.64 | 218.71 | 221.97 | 33 | 1.23 | – |
| PKI | Parkland Fuel Corporation | Consumer Discretionary | $5.62B | 0.984 | 41.95 | 29.80 | 35.44 | 35.21 | 1,836,987 | 1.14 | 0.0076 |
📌 Caption:
MTY Food Group Inc. (TSX: MTY) competes in the broader consumer discretionary space alongside major players like Alimentation Couche-Tard, Dollarama, and Restaurant Brands International. While MTY is smaller in size, its franchise model and diversified brand portfolio offer unique growth potential.
Valuation Measures: MTY Food Group Inc. (TSX: MTY)
| Metric | Current | 2/28/2025 | 11/30/2024 | 8/31/2024 | 2/29/2024 | 11/30/2023 |
|---|---|---|---|---|---|---|
| Market Cap | 930.74M | 1.03B | 1.13B | 1.03B | 1.23B | 1.25B |
| Enterprise Value | 2.08B | 2.20B | 2.27B | 2.24B | 2.47B | 2.51B |
| Trailing P/E | 109.38 | 44.06 | 12.03 | 10.50 | 11.88 | 13.31 |
| Forward P/E | 10.42 | 10.75 | 11.52 | 10.17 | 12.50 | 12.30 |
| PEG Ratio (5yr expected) | — | — | — | — | — | — |
| Price/Sales | 0.82 | 0.92 | 1.00 | 0.90 | 1.06 | 1.11 |
| Price/Book | 1.14 | 1.29 | 1.35 | 1.26 | 1.51 | 1.56 |
| Enterprise Value/Revenue | 1.79 | 1.91 | 1.96 | 1.93 | 2.11 | 2.22 |
| Enterprise Value/EBITDA | 14.49 | 8.85 | 9.07 | — | 9.40 | 10.07 |
📌 Caption:
MTY Food Group’s valuation metrics highlight a recent compression in earnings multiples, with a notably low forward P/E ratio suggesting improved future profitability. Despite revenue fluctuations, MTY maintains a stable enterprise value relative to its sales and EBITDA.
Final Thoughts
MTY Food Group Inc. (TSX: MTY) offers investors a compelling combination of defensive growth and stability, particularly in volatile economic environments. With its diversified restaurant portfolio, asset-light franchise model, and proven track record of successful acquisitions, MTY is well-positioned for long-term success.
✅ Key Takeaways:
- Strong Brand Portfolio: MTY owns an extensive collection of restaurant brands.
- Franchise-Centric Model: Low capital expenditures with strong recurring revenue.
- Attractive Valuation: Reasonable P/E ratio compared to peers with steady earnings growth.
- Global Expansion: International growth prospects support future revenue streams.
- Resilient Dividend: Consistent and attractive dividend yield for income-seeking investors.
- Ideal for TFSA Investors: Balanced risk-return profile during volatile market periods.
