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MTY Food Group remains a core holding in my concentrated value portfolio. I continue to see strong value in MTY's current positioning and fundamentals. My thesis is supported by MTY's scale and resilient business model.

MTY Food Group Inc. (MTY:CA) Q4 2025 Earnings Call Transcript

GAAP Measures: Segment profits increased by 48% to reach $87.3 million during the quarter primarily due to a one-time catch up of gift card breakage income on unutilized gift cards. Net income attributable to owners increased to $32.1 million, or $1.40 per diluted share compared to a loss of $(55.3) million, or $(2.34) per diluted share in Q4-24.

MTY Food Group trades at a distressed multiple despite stable cash flows and a strategic review signaling a potential sale. MTY's franchise-heavy model insulates it from cost inflation, with system sales steady at $1.5bn and a robust 15% free cash flow yield. Valuation disconnect is stark: MTY trades at 6.0x–7.3x EBITDA, well below private market peers, implying 40–52% upside to a likely takeout price.