Restaurant franchisor and operator MTY Food Group has posted a net income of $38.9m for the third quarter of 2023.
This is an increase of almost 74% compared to its income of $22.4m a year ago.
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The restaurant company attributed the year-over-year growth to higher normalised adjusted EBITDA and lower income taxes.
For the quarter ended 31 August 2023, the company’s revenue soared 74% to $298m from $171.5m last year.
The acquisitions of BBQ Holdings, Wetzel’s Pretzels and Sauce Pizza & Wine contributed to a $104.6m increase in corporate-owned site revenues in the US and International sectors.
MTY’s normalised adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 54% to $72.8m from $48.9m a year ago.
The company’s system sales surged 33% year-over-year to $1.5bn in Q3.
In the US, system sales rose by 55%, 4% in Canada and 14% in the international market.
MTY’s same-store sales in Canada grew by 6%, by 4% in the US and by 2% in international locations.
In the third quarter of 2023, MTY opened 87 locations compared to 63 locations in the year-ago period.
The company also announced a quarterly dividend of $0.25 per share.
MTY Food Group CEO Eric Lefebvre said: “MTY continued to reap the benefits of its dual growth strategy in the third quarter of 2023 with normalized adjusted EBITDA increasing 44% year-over-year to $72.9m.
“Clearly, we are elated with our latest acquisitions, which helped raise system sales 33% to $1.5bn in the quarter, but we are also pleased by our same-store sales improvement of 3% over the prior year.
“As a result, we continue to deliver profitable growth with exceptional predictability despite a mixed economic environment marked by higher interest rates, inflationary pressure and heightened price sensitivity on the part of consumers.”
