By Adriano Marchese
MTY Food Group shares rallied this morning as the company announced that its recent acquisitions have played a significant role in driving strong profit and revenue results for the third quarter.
Acquisitions Boost System Sales
MTY Food Group's chief executive, Eric Lefebvre, credited the company's recent acquisitions for contributing to the increase in system sales during the period. The Canadian franchiser and operator of casual dining and quick-service restaurants acquired BBQ Holdings, Wetzel's Pretzels, and Sauce Pizza and Wine, which have all positively impacted the company's overall sales.
Impressive Financial Performance
System sales for the third quarter of this year reached C$1.47 billion, a substantial rise from C$1.1 billion in the same period last year. This surge in sales played a key role in driving the company's revenue up to C$298 million, beating analyst expectations of C$292.8 million.
Additionally, MTY Food Group's net income climbed to C$38.9 million or C$1.59 per share, compared to C$22.4 million or C$0.92 per share in the previous year.
Continued Success and Expansion
MTY Food Group also impressed investors with positive same-store sales growth in Canada and the U.S., which saw a 3% and 2% rise respectively compared to the same time last year. However, international sales remained flat.
During the quarter, the company opened 87 new locations while closing 92 others. Despite this, MTY Food Group remains committed to achieving a balanced approach to new restaurant openings.
Overall, MTY Food Group continues to demonstrate strong performance and strategic expansion through its acquisitions.
