The company expects these closures to incur restructuring costs between C$10 million and C$12 million, impacting free cash flow in the near term. This decision follows a difficult second quarter marked by inflation and rising energy costs, which suppressed discretionary dining. Revenue dropped to C$279.9 million from C$304.9 million in the prior-year period, missing analyst projections as same-store sales slipped 2.1%.
In section Market Quotes
MTY Food Group to Shutter 68 Stores After Profit Slump
Facing a sharp decline in consumer spending and a challenging retail climate, MTY Food Group will close 68 of its 232 corporate-owned locations. The restaurant franchisor, which manages brands including Cold Stone Creamery and Thai Express, aims to stem combined annual losses exceeding C$10 million by trimming its footprint.
Chief Executive Eric Lefebvre noted that the results highlight ongoing pressure on household budgets. System-wide sales, covering both franchised and corporate sites, fell to C$1.41 billion. Net income saw a significant contraction, plummeting to C$15.4 million from C$57.3 million, while adjusted earnings of C$0.97 per share also failed to meet market expectations.
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