COVID-19 takes bite out of MTY revenues but third-quarter profits remain stable

COVID-19 takes bite out of MTY revenues but third-quarter profits remain stable
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MONTREAL — MTY Food Group Inc. reported stable earnings in the third quarter despite lower revenues caused by the impact of COVID-19.

The restaurant company behind such brands as Thai Express, Tiki-Ming, Tutti Frutti and Valentine says its net profit was $22.9 million or 93 cents per diluted share, compared with $22.9 million or 91 cents per share a year earlier.

Revenues for the period ended Aug. 31 decreased 16 per cent to $135.4 million from $161.3 million in the same period last year.

System-wide sales fell to $897.5 million from $1.08 billion in the third quarter of 2019.

MTY says 52,900 business days were lost during the quarter with 1,470 restaurants temporarily closed at the beginning of the quarter and 364 at the end.

As of Friday, 339 locations representing less than five per cent of the company’s network remained shuttered, with additional restrictions recently imposed forcing some restaurants to close again.

“For the next quarter, we will continue to monitor the impacts of the pandemic, adjust our operations to these volatile market conditions, help our franchisees access government programs that are available to them and aggressively manage our expense levels and liquidity,” said CEO Eric Lefebvre.

This report by The Canadian Press was first published Oct. 9, 2020.

Companies in this story: (TSX:MTY)

The Canadian Press

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