The following is a summary of the MTY Food Group Inc. (MTYFF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• System sales for the quarter were CAD1.459 billion, a 1% decrease primarily due to a CAD13.8 million decline in Canada, offset by a CAD3.5 million improvement in the US.

• Normalized adjusted EBITDA increased by 1% reaching CAD52.6 million for the quarter.

• Total revenues slightly decreased from CAD305.2 million in Q2 2023 to CAD303.7 million in the current year.

• Free cash flow per share for the quarter was CAD1.01, totaling CAD5.21 per share over the last 12 months.

Business Progress:

• Digital sales for the quarter increased by 8%, rising from CAD266.8 million to CAD287.7 million, making up 20% of total sales.

• MTY continued to focus on brand performance improvements, particularly in the US where snack category brands like Cold Stone and Wetzel's Pretzels posted strong gains.

• The company closed 90 locations and opened 85, netting a decrease of 5 locations, ending the quarter with 7,107 locations.

Opportunities:

• Positive system sales growth in the US, particularly in the snack category which includes Cold Stone, Wetzel's Pretzels, and others which performed exceptionally well during the quarter.

Risks:

• Operational disruptions remain a concern, particularly from the ongoing ERP implementation which has been moving forward with increased intensity.

• Economic factors such as minimum wage increases and intensified promotional activities in the competitive food sector could affect profitability.

More details: MTY FOOD GROUP INC IR

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