Restaurant franchisor and operator MTY Food Group has reported a revenue increase of 65%, to $242m, in the fourth quarter (Q4), ended 30 November 2022, compared with $146m in the same period of the previous year.
The surge in Q4 revenue has been attributed to the acquisition of BBQ Holdings in September 2022.
MTY Food Group’s revenue during fiscal 2022 grew by 30% to $716.5m
In Q4, the company’s net income attributable to owners declined to $7.1m, or $0.29 per share, compared with $24.9m, or $1.01 per share, for the same period in 2021.
The company said that some factors that influenced this decrease were higher non-cash impairment charges on intangible assets, higher interest on long-term debt, and a fall in the ‘gain on revaluation of financial liabilities recorded at fair value’.
Its net income attributable to owners was also down to $74.8m, or $3.06 per share, in fiscal year 2022, compared with $85.6m, or $3.47 per share, in 2021.
At the end of the latest quarter, MTY’s System sales were up by 25% year-over-year to $1.2bn, primarily due to the acquisition of BBQ Holdings and organic growth generated by existing locations.
In the fiscal year 2022, the company’s system sales improved by 17% to $4.3bn and were up 12% year-over-year, with Canada contributing the majority of the growth.
Its digital sales in 2022 amounted to $820.3m, or 20% of system sales, compared with $803.6m, or 23% of system sales, in the previous year.
In Q4 2022, MTY’s normalised adjusted EBITDA improved 25% year-over-year to $53.5m, while in the fiscal year 2022, the company’s normalised adjusted EBITDA was up by 11% to $187.4m from $168.6m in 2021.
In the fiscal year 2022, MTY’s network acquired 332 locations, and at the end of Q4, MTY’s network had 6,788 locations in operation.
MTY Food Group CEO Eric Lefebvre said: “We are extremely proud of the results realised during 2022, a year marked by covid-related restrictions early in the year, labour and supply chain challenges, inflationary pressure, and uncertain market conditions.
“For 2023, the acquisitions of BBQ Holdings, for which only two months of activity are reflected in our 2022 results, Wetzel’s Pretzels and Sauce Pizza and Wine, which were both realised in early 2023, are expected to have a strong positive impact on the business and help us achieve new heights.”