CA - MTY Food Group stock surges on stronger than expected sales

2023-04-12 11:33:43 ET

MTY Food Group ( OTCPK:MTYFF ) gained sharply on Wednesday after reporting quarterly sales that more than doubled from the prior year.

The Canadian restaurant operator posted C$0.75 ($0.56) in earnings per share for the first quarter. Meanwhile, quarterly revenue rose 103.6% to C$286M ($212.5M). Analysts had expected C$0.70 in earnings per share on $249.5M in revenue. System sales reached an all-time record-high of C$1.4 billion in the quarter, led by growth in the US.

“Our acquisitions of Wetzel's Pretzels and Sauce Pizza and Wine during the quarter, along with the earlier BBQ Holdings transaction, largely contributed to 69% year-over-year growth in system sales in the US market,” CEO Eric Lefebvre explained. “On the Canadian side, we delivered 32% system sales growth as the business rebounded from pandemic-related restrictions in the first quarter last year.”

He added that the company will “continue to opportunistically seek acquisitions” in 2023 while working to pay down debt.

Canadian-listed shares of MTY Group ( TSX: MTY:CA ) rose 4.21% during Wednesday’s session.

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