MONTREAL — MTY Food Group Inc. has reported its results for the third quarter ended Aug. 31, 2021.
At the end of the period, MTY’s network had 6,848 locations in operation, with 6,701 of those locations franchised or under operator agreements (23 were operated through the joint venture and 124 were operated by MTY). In terms of geographical location, 54 per cent are in the U.S., 39 per cent in Canada and seven per cent international. Moreover, system sales were up 13 per cent from the same period in 2020, reaching $1,016.2 million.
Its casual-dining concept contributed to $47.8 million of the increase and represented a 45 per cent increase year-over-year (YOY). At the end of the quarter, 164 locations were still temporarily closed because of the COVID-19 pandemic. As of Oct. 8, 2021, 139 locations remained temporarily closed.
In terms of finances, cash flows from operations increased 21 per cent to $46.6 million, compared to $38.6 million for the same quarter last year. MTY’s revenues improved 11 per cent, from $135.4 million to $150.8 million. Moreover, adjusted EBITDA increased 15 per cent to $49.7 million, compared to $43.4 million for the same quarter last year. The network’s overall scalability for the franchising division through cost management allowed margins to increase to 59 per cent.
Finally, in regard to liquidity and capital resources, cash flows generated by operating activities were $6.6 million, compared to $38.6 million for the same period last year. In total, operations generated $46 million in cash flows, compared to $45.5 million for the third quarter of 2020.
