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MTY Food Group posts 13% increase in Q1 profit; acquisitions boost revenue 26%

MONTREAL – MTY Food Group Inc. has reported double-digit increase in first-quarter profits compared with a year ago as the fast-food chain franchisor and operator reported at 26 per cent increase in quarterly revenues.

Montreal-based MTY, whose brands include Country Style, Mr. Sub, Thai Express, Manchu Wok and many others, says net income attributable to shareholders in the three months ended Feb. 28 was $6.3 million or 33 cents per share, up 13 per cent from $5.5 million or 29 cents in the same 2014 period.

Revenue rose to $32.4 million from $25.6 million, mainly because of corporate stores acquired in late 2014 and early 2015.

System sales increased 23 per cent to $246.7 million.

At the end of the quarter, MTY’s network had 2,837 locations in operation, of which 53 were corporate and 2,784 franchised.

MTY added Manchu Wok, SensAsian and Washabi Grill & Noodle to its extensive list of brands in a $7.9-million cash deal that closed in December.