Shares of MTY Meals Group (MTY) gained virtually 15% in early buying and selling on Friday after the corporate reported a revenue in its second quarter and introduced it could begin paying dividends once more. MTY is behind greater than 80 restaurant manufacturers, together with well-known meals court docket manufacturers like Thai Categorical, Excessive Pita, and Tiki-Ming.
Income got here in at C$135.9 million within the three months ended Might 31, a rise of 39% from C$97.8 million within the prior-year quarter.
In the meantime, Internet revenue attributable to shareholders amounted to C$23 million (C$0.93 per share) in Q2 2021, up from a web lack of C$99.1 million (-C$4.01) in Q2 2020.
The franchisor and restaurant operator, which suspended its dividend final yr when the pandemic pressured eating places to shut, mentioned it could pay a quarterly dividend of C$0.185 per share subsequent month.
MTY CEO Eric Lefebvre mentioned, “We’re extraordinarily happy to notice that the adjusted EBITDA for the quarter greater than doubled over final yr to $43.5 million regardless of the lingering affect of the pandemic, making it considered one of our greatest quarters ever. This displays a marked restoration in Canada in addition to natural development of $15.3 million within the US and Worldwide phase. This translated into robust money flows from working actions, which reached $29.5 million. This allowed us to additional scale back our debt stage by $15 million, bringing complete repayments because the begin of the pandemic to shut to $145 million.”
MTY mentioned that on the finish of the quarter, 359 places had been nonetheless briefly closed as a result of pandemic, together with 283 in Canada, 54 in america, and 22 internationally. The corporate mentioned that 258 places are nonetheless briefly closed as of Friday, July 9. (See MTY Meals Group inventory charts on TipRanks)
Final week, Nationwide Financial institution Monetary analyst Vishal Shreedhar maintained a Maintain score on MTY with a C$58.00 worth goal. This suggests 7.5% draw back potential.
Total, consensus amongst Wall Avenue analysts is that MTY is a Reasonable Purchase based mostly on 2 Buys and 5 Holds. The common MTY Meals Group worth goal of C$59.37 implies 5.3% draw back potential to present ranges.
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