MTY Food Group Inc., one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported Thursday financial results for its fourth quarter of fiscal 2025 ended November 30, 2025, noting that its footprint continues to expand.
MTY Group franchises and operates quick-service, fast casual and casual dining restaurants over 80 different banners in Canada, the US and Internationally. Based in Montreal, MTY has 7,080 locations.
“We continued to expand our footprint during the quarter with 19 net new store openings, extending the momentum from Q3 and supported by a strong pipeline of development led by experienced franchise operators,” said Eric Lefebvre, CEO of MTY.
“Despite an unsettled macroeconomic backdrop, our franchisees are navigating these headwinds effectively with modest growth in Canada and slight pressure in the US. Same-store sales were stable in Canada, supported by strength in the casual dining, while the US experienced modest pressure. Importantly, our asset-light, diversified model continues to generate strong free cash flow, positioning us well to support our brands and capitalize as operating conditions improve.”
Here are some of the company’s key highlights for Q4:
- At the end of the fourth quarter of 2025, MTY’s network had 7,080 locations in operation, of which 6,831 were franchised or under operator agreements and 249 were corporate-owned. The geographical split
among MTY’s locations remained stable year-over-year at 57% in the US, 35% in Canada and 8% International. - During the fourth quarter of 2025, MTY’s network opened 85 locations (Q4 2024 – 92 locations) and closed 66 others (Q4 2024 – 79 locations) for a net positive store growth of 19 locations.
- System sales reached $1.41 billion in the fourth quarter of 2025, representing an increase of 3% due to a 53rd week of sales recorded for some of the company’s concepts as well as positive foreign exchange fluctuation. Excluding this 53rd week and foreign exchange impact, system sales decreased by 2%. The US and International segments experienced an overall sales decrease of 3%, while Canada posted an overall increase of 1%.
- Same-store sales decreased 1.7% year-over-year in the fourth quarter. By region, Canada was in line with
the prior period, the US dropped 2.8%, while International saw a decrease of 3.2%. - Digital sales increased by 1% for the quarter to reach $288.8 million, including the impact of foreign
exchange rates, compared to $286.9 million in Q4-24. The increase was mainly due to an improvement of
16% in the Canadian segment, partially offset by a decline of 4% in the US. The US decline was due to a
drop in one brand in the US. Excluding this brand, US digital sales increased by 6%. Digital sales
represented 21% of total sales, unchanged from the prior period. - Company revenue increased by 7% to reach $305.4 million in the fourth quarter, driven by growth in
franchise operation in the US and the processing, distribution and retail segment, partially offset by a decline in the corporate segments. The US franchising segment benefited from a one-time gift card breakage adjustment of $29.5 million. - Net income attributable to owners totaled $32.1 million, or $1.40 per share ($1.40 per diluted share), in the fourth quarter compared to a loss of $55.3 million, or $2.34 per share ($2.34 per diluted share, for the same period in 2024. The year-over-year improvement is mainly attributed to lower impairment losses in 2025.
- Normalized adjusted EBITDA, which excludes acquisition-related expenses and SAP project implementation
costs, increased by $28.3 million year-over-year to reach $87.7 million in the fourth quarter of 2025 primarily due to a one-time catch up of gift card breakage income on unutilized gift cards.
MTY Group said it announced in November that the Board of Directors of the company had initiated a strategic review process and engaged a financial advisor to identify, review and evaluate potential strategic alternatives with a view toward continuing to enhance shareholder value. It said the process is ongoing.
“MTY continues to navigate a dynamic operating environment. The macro-economic conditions continue to create short-term headwinds and the company continues actively implementing a range of strategic initiatives to position the business for growth once the environment improves. These include, and are not limited to, driving menu innovation, maintaining product quality and consistency, enhancing both online and in-store customer experiences, and reinforcing a strong value proposition across its banners,” it explained.
“The pipeline of future locations remains strong. This quarter’s positive net openings was in line with
expectations. MTY continues to anticipate an improvement in the pace of openings in the coming quarters, excluding normal seasonality in the first quarter of the year, and continues to see strong demand for its brands, especially the larger ones.
“Management notes certain macroeconomic and policy-related uncertainties could affect performance. To date MTY has only seen modest direct impacts from tariffs. In both Canada and the US, the Company primarily sources products domestically, which helps limit the potential exposure. Management remains confident in its ability to navigate potential impacts through its strong supply chain and procurement capabilities, strategic menu adjustments, and, when necessary, pricing actions.”
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