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TSE:MTY
This summary was created by AI, based on 5 opinions in the last 12 months.
MTY Food Group (MTY-T) has garnered mixed reviews from experts, with some appreciating the franchise model that generates revenue and fosters brand growth. Despite a recent strategic review implemented in December and an announced significant dividend increase, concerns linger regarding the company's growth prospects. Analysts are worried about the company's ability to grow through acquisitions and the impact of delayed back-to-office trends on its performance. While some view the stock as undervalued with a high margin of safety and a yield of 3.48%, others highlight that revenue is expected to remain flat in the near future, pointing to muted organic growth. Overall, the situation presents a dichotomy between potential value and growth concerns, leading some to suggest exploring alternative investment options.
Shares of MTY are cheap but revenue is expected to be flat for the foreseeable future here and organic growth is muted as well. We would be fine with moving on to something else.
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Shares of MTY are cheap but revenue is expected to be flat for the foreseeable future here and organic growth is muted as well. We would be fine with moving on to something else.
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Shares of MTY are cheap but revenue is expected to be flat for the foreseeable future here and organic growth is muted as well. We would be fine with moving on to something else.
Unlock Premium - Try 5i Free
Shares of MTY are cheap but revenue is expected to be flat for the foreseeable future here and organic growth is muted as well. We would be fine with moving on to something else.
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In Q2-2024, MTY reported a slight decrease in revenue by around 1% to $303.7M, beating the estimate of $294.5M, and EPS came at $1.27, which also beats the estimate of $1.07. The results are just OK, but improving, and came in better than expected in both the top and bottom line. MTY continues to run a leveraged balance sheet with a net debt of $1.2B and net debt/EBITDA of 4.7x. The company also repurchased shares at a more aggressive pace recently and just renewed its share repurchase authorization. MTY’s businesses continue to generate healthy cash flow, however, MTY’s growth prospect sover the next few years is expected to be flat, but the valuation is also reasonable, trading at 12.7x Forward P/E.
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Company has been around for a long time. Concern is that M&A not performing well. Location of business units in shopping malls, and food courts a concern (unsure on traffic in these locations). Ability to grow business is in question. However, value of business on markets is cheap. Would recommend investors look elsewhere.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Debt levels can be a concern. Operating cash flow stable. Management focused on cost cutting. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Proven food consolidator in North America. Regained pre-pandemic sales levels. Trading at a good valuation. Geographic diversification. Unlock Premium - Try 5i Free
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Proven food consolidator in North America. Regained pre-pandemic sales levels. Trading at a good valuation. Geographic diversification. MTY can be defined as a network of restaurant and food brand names and has proven itself to be a successful consolidator in the industry. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They generate free cash flow and the valuation is fairly cheap now at 2.5x forward sales and 15x forward P/E. Liquidity is not great. If rates rise, the debt could become a problem and put pressure on their margins and balance sheet. Valuation is at historical lows and there is decent upside potential with good downside protection. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The current valuation is relatively cheap if the current rate of reopening locations is maintained. Debt to equity ratio is around 1.6 due to the pandemic. The positive trend should continue into summer and fall with further reopenings. Unlock Premium - Try 5i Free
MTY Food Group is a Canadian stock, trading under the symbol MTY.TO (previously MTY-T on Stockchase) on the Toronto Stock Exchange (MTY-CT). It is usually referred to as TSX:MTY or MTY.TO
In the last year, 5 stock analysts issued a Buy, Sell, or Hold rating on MTY.TO (previously MTY-T on Stockchase). 1 analyst recommended to BUY and 4 analysts recommended to SELL the stock. The latest stock analyst rating is PAST TOP PICK. Read the latest stock experts' ratings for MTY Food Group.
MTY Food Group was recommended as a Top Pick by Teal Linde on 2021-05-17. Read the latest stock experts ratings for MTY Food Group.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for MTY Food Group.
MTY Food Group is followed by 128 investors on Stockchase and is a trending stock that is worth watching.
On 2026-06-15, MTY Food Group (MTY.TO) stock closed at a price of $40.37.
Likes the franchise model, as they get revenue from that and grow their great brands. Market was worried it couldn't grow by acquisition to the same degree, plus hurt by delay in back-to-office. Implemented strategic review in December.
(Analysts’ price target is $43.40)Last week, announced huge dividend increase. Inexpensive PE. Great value, large margin of safety. Yield is 3.48%.