Q: Hi, Could you please comment on MTY earnings. Thank you
5i Research Answer:
In Q2-2024, MTY reported a slight decrease in revenue by around 1% to $303.7M, beating the estimate of $294.5M, and EPS came at $1.27, which also beats the estimate of $1.07. The results are just OK, but improving, and came in better than expected in both the top and bottom line. MTY continues to run a leveraged balance sheet with a net debt of $1.2B and net debt/EBITDA of 4.7x. The company also repurchased shares at a more aggressive pace recently and just renewed its share repurchase authorization. MTY’s businesses continue to generate healthy cash flow, however, MTY’s growth prospect sover the next few years is expected to be flat, but the valuation is also reasonable, trading at 12.7x Forward P/E.