Q: Hi, Could you please comment on MTY earnings. Thank you
5i Research Answer:
EPS of $1.46 beat estimates of $1.09 and revenues of $292.75M missed estimates of $296.88M. This was a slight decline in results overall, with sales relatively flat compared to the prior year while its adjusted EBITDA declined 1%. Free cash flows in the quarter were strong, and it repurchased $11.4M of shares in the quarter. Management noted its restructuring is beginning to bear fruits, and this can be seen in its cash flow improvements. A few analysts raised their price targets on the company due to potential tailwinds from its restructuring being largely complete. The market seemed pleased with the results overall, and given its cheap valuation of 11.5X forward earnings, a lot of investo concerns could be baked into the price already.