TSE:MTY

MTY Food Group (MTY.TO)

37.85
+0.23 (0.61%)
as of Jul 3, 2026, 7:59:59 pm Market Open.
128 watching
0
Investor Insights
star iconJul 5, 2026, 12:00 am

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 analysts. One perspective praises the franchise model that fuels revenue from its popular brands, highlighting their recent strategic review and significant dividend increase as positive indicators. The stock is considered cheap with a low PE ratio and a dividend yield of 3.48%, suggesting substantial value with a large margin of safety, particularly with an analyst price target of $43.40. In contrast, other insights express concerns about its growth potential, indicating that revenue is expected to remain flat moving forward and organic growth is muted. This has led some experts to suggest considering alternatives to MTY, despite its current attractive valuation metrics.

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Consensus
Cautious
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Valuation
Undervalued
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HOLD
Top pick in May, up 161%. It is pricing in a nearly full recovery. It has run up to where it was. It is not an attractive buy today. He plans to hang on to it.
DON'T BUY
The king of the food court. Have you been at a food court lately? MTY is well-run, but carries a lot of debt to fund their acquisition strategy. Will be interesting to see how they will make food courts work during this pandemic. It's not reasonably valued, so maybe buy on weakness, but it's too uncertain for him.
DON'T BUY
Some companies rely on a COVID vaccine like this. He's concerned about demand in downtown cores, and the future looks uncertain, so there are investing opportunities in this area, including MTY which operates food courts. MTY has been on an acquisition streak, a strategy that works when times are good, but not when times are bad like now, leading to too much debt. Doesn't see dividend growth here.
BUY
It has considerable upside to get back to where it was. We should be less concerned now than we were when the economy was getting shut down. They say they are generating 80% of what they were previously by increasing prices, increasing turns, and there is greater activity on take out and pick up. This is his choice for investing in the recovery.
TOP PICK
They specialize in food court restaurants which is a troubled area because of the lockdown. But most restaurant stocks were down 50% but were already struggling before the virus. One exception was MTY. They've enjoyed a 25% EPS compound growth rate for the last 5 years, with postiive same-store sales in January and February. Yes, some operations are in hard-hit food courts and malls, but 60% of their locations are in the streets, not malls. They took on a lot of debt to buy a pizza chain, so the stock went down. If you believe people will return to fast food and that reopenings will be successful, then MTY is a buy. Pizza does very well in this climate. (Analysts’ price target is $27.29)
BUY
Today's news was good, because it broken a downward trend in a downward channel.
DON'T BUY
They've had a volatile 2019. They did a good job rolling up franchises, but that positive has been priced into the stock. Not a good-growth company; the restaurant space faces wage increases and food inflation.
PAST TOP PICK
(A Top Pick Sep 07/18, Up 7%) They are an acqusitions machine, buying fast food brands, inlcuding a big one in the past two years that he hopes would increase their margins. They're rebounding from a hiccup now, so things looks good. It will grow nicely and eventually pay dividends.
TOP PICK

A simple business, relatively cheap at 14x earnings. Likes the chart. If you buy stocks that are hitting new 52-week highs, they tend to keep doing it. Grow by acquisition, and they’re good at it. Can get a decent double-digit return without losing sleep. Yield is 1%. (Analysts’ price target is $60.33.)

PAST TOP PICK

(A Past Top Pick on January 12, 2017, Down 1%) Food courts. They brought Thai Express to the States, but it didn't take off. They also bought Imvescor Restaurant Group that he didn't like and sold his shares. He saw an overhang with mall traffic and wasn't impressed with same-store sales.

PAST TOP PICK

(A Top Pick Jan 12/17, Up 14%) He recently got out because he found a better opportunity. He does not see expected returns getting much higher. He decided to exit. It’s a well run company. Everyone likes Thai Express.

TOP PICK

Relatively under the radar but one of the top performing companies on the TSX over the last 10-15 years. They went thought a period of consolidation and broke out on the announcement of an acquisition. They have a nice dividend. They have 55 brands. (Analysts’ target: $51.38).

BUY ON WEAKNESS

(Market Call Minute.) This operates a number of different fast food franchises in food courts. He likes it longer-term. It has had a bit of a run and he would be a buyer on weakness.

WATCH

Management team is quite strong. They’ve done a really, really good job of growing the company. Did some fairly large acquisitions recently, so the debt profile has changed and there is a bit more risk. The real story is that same-store sales has been flat to slightly falling over the last few quarters. Likes the name, but until same-store sales start to pick up, he wouldn’t be too interested. Priced at a premium right now.

BUY

One of the best performing stars on the TSX over the past 10 years. Owns a bunch of food court franchises, and are a consolidator in that space. Very consistent ROE generators. This is one of those stocks that completely flies below the radar screen.

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