MTY Food Group Reports Q4 Loss Amid Impairment Charges

MTY Food Group Inc. reported a significant loss of $55.3 million in its fourth quarter, compared to a profit of $16.4 million in the same period last year, mainly due to a $64.6 million impairment charge related to its Papa Murphy's brand and $26.3 million in foreign exchange losses. Revenue for the quarter increased slightly to $284.5 million, up from $280 million, and system sales rose to $1.37 billion, reflecting a 2% growth attributed to organic performance. The company's adjusted EBITDA decreased slightly to $58.8 million, down from $60.4 million, while the franchising segment's normalized adjusted EBITDA increased by 8%. MTY opened 13 new locations during the quarter, emphasizing its commitment to growth despite the financial setbacks. Analysts had anticipated a decline in profit, predicting earnings of around $0.65 per share. The company continues to focus on managing its financial obligations, including share repurchases and debt repayments.