By Adriano Marchese
MTY Food Group shares advanced Wednesday morning after the company said its newest acquisitions have helped drive better-than-expected profit and revenue in the third quarter.
At 10:15 a.m. ET, MTY Food shares were trading 3.1% higher at 58.39 Canadian dollars ($42.98).
Chief Executive Eric Lefebvre said the company’s recent acquisitions continued to be a big contributing factor to its system sales in the period, a key metric for franchisers which measures total sales of all outlets that use one of its brands. The company acquired BBQ Holdings in September of last year, as well as Wetzel’s Pretzels and Sauce Pizza and Wine in December.
The Canadian franchiser and operator of casual dining and quick-service restaurants said system sales in the third quarter rose to C$1.47 billion from C$1.1 billion.
This supported the company’s revenue rise to C$298 million from C$171.5 million. According to FactSet, analyst expectations forecasted a rise to C$292.8 million.
Net income climbed to C$38.9 million, or C$1.59 a share, up from C$22.4 million, or C$0.92 a share, a year earlier.
In the second quarter, MTY Food also beat expectations for revenue and profit largely due to the contribution of its acquisitions, it said.
On Wednesday, MTY Food said same-store sales growth was positive in Canada and the U.S. compared with last year at this time, rising 3% and 2%, respectively, while its international segment remained flat.
MTY Food said it opened 87 new locations and closed 92 others during the quarter, but added that it continues to aim to break even in terms of new restaurant openings.
Write to Adriano Marchese at [email protected]
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