Restaurant franchisor and operator MTY Food Group has disclosed a net income of $38.9 million for the third quarter of 2023.
This represents a nearly 74% growth compared to its earnings of $22.4 million from the same period last year.
The restaurant company credited the year-over-year expansion to increased normalized adjusted EBITDA and reduced income tax expenses.
In the quarter ending on August 31, 2023, the company experienced a remarkable 74% surge in revenue, reaching $298 million, up from $171.5 million in the previous year.
The addition of BBQ Holdings, Wetzel’s Pretzels, and Sauce Pizza & Wine acquisitions led to a significant boost of $104.6 million in corporate-owned site revenues within both the US and International sectors.
MTY’s normalized adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 54%, reaching $72.8 million, compared to $48.9 million one year ago.
In the third quarter, the company witnessed a remarkable 33% year-over-year surge in system sales, reaching $1.5 billion.
System sales in the United States increased by 55%, while in Canada, they grew by 4%, and the international market saw a 14% rise.
MTY experienced a 6% growth in same-store sales in Canada, a 4% increase in the US, and a 2% uptick in international locations.
During the third quarter of 2023, MTY inaugurated 87 locations, an increase from the 63 locations opened in the same period the previous year.
The company additionally declared 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.”