The acquisition of the quick-service chain, which sells hotdogs, fries and hamburgers, will include seven real-estate properties, including Valentine’s head office and an 8,300-square-feet distribution centre.
Valentine has 86 franchised and nine corporate-owned restaurants with annual system sales of $29 million. “This deal will expand our current franchise business and is in line with our strategy to acquire profitable franchise systems,” said MTY founder and CEO, Stanley Ma. “Valentine will complement our existing banners.”
In its most recent financial report, MTY Food Group reported for the second quarter, ended May 31, revenue increases of 51 per cent to $17.3 million, reflecting higher franchise fees and royalties generated by outlets opened in the last 12 months. Those numbers also reflect last year’s $16.5-million acquisition of the 490-unit Country Style in Ontario. Earnings were $3.8 million, up 31 per cent from $2.9 million a year earlier. MTY added 79 restaurant units in the first half of fiscal 2010 and closed 44.
MTY Food Group currently operates 1,605-unit quick-service restaurants, primarily franchised, across Canada with 25 banners, including Tiki-Ming, Madina Mediterranean Cuisine, Thai Express and Yogen Früz.