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Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

MTY Food Group (MTY-T) used to be a good compounder with around 20% annual growth, but that has slowed to around 10%. The company's revenue and EPS have seen a slight decrease but beat estimates, showing signs of improvement. However, concerns about the company's ability to grow and its reliance on business units in shopping malls and food courts have been raised. Despite this, the valuation is considered reasonable, with a flat growth prospect over the next few years. Overall, the stock is seen as a speculative buy due to attractive valuation and potential for improvement.

Consensus
Mixed
Valuation
Fair Value
WATCH
MTY Food Group

Used to be a good "compounder" (~20% annually). However, growth has slowed to around 10%. Is watching, but not investing at this time. 

food services
BUY ON WEAKNESS
MTY Food Group
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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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food services
RISKY
MTY Food Group

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. 

food services
RISKY
MTY Food Group

Impacted by wage inflation, rising food costs, and consumers spending less on eating out. Valuation is now attractive enough for a speculative (small position) buy.

food services
BUY
MTY Food Group

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

food services
BUY
MTY Food Group

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

food services
BUY
MTY Food Group

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

food services
BUY ON WEAKNESS
MTY Food Group

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

food services
BUY
MTY Food Group

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

food services
PAST TOP PICK
MTY Food Group
(A Top Pick May 19/20, Up 171%) When the pandemic started, restaurants were shut down. This was one of the best performing stocks over the last 20 years and he got his entry point last year. They have years of growth ahead though consolidation and expansion.
food services
HOLD
MTY Food Group
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.
food services
DON'T BUY
MTY Food Group
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.
food services
DON'T BUY
MTY Food Group
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.
food services
BUY
MTY Food Group
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.
food services
TOP PICK
MTY Food Group
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)
food services
Showing 1 to 15 of 54 entries

MTY Food Group(MTY-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for MTY Food Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

MTY Food Group(MTY-T) Frequently Asked Questions

What is MTY Food Group stock symbol?

MTY Food Group is a Canadian stock, trading under the symbol MTY-T on the Toronto Stock Exchange (MTY-CT). It is usually referred to as TSX:MTY or MTY-T

Is MTY Food Group a buy or a sell?

In the last year, 3 stock analysts published opinions about MTY-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for MTY Food Group.

Is MTY Food Group a good investment or a top pick?

MTY Food Group was recommended as a Top Pick by on . Read the latest stock experts ratings for MTY Food Group.

Why is MTY Food Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is MTY Food Group worth watching?

3 stock analysts on Stockchase covered MTY Food Group In the last year. It is a trending stock that is worth watching.

What is MTY Food Group stock price?

On 2024-12-06, MTY Food Group (MTY-T) stock closed at a price of $47.75.