MTY Food (TSX:MTY) posts $24.9M Q4 profit. A consumer stock to buy?

3 min read | February 18, 2022 02:04 AM AEDT | By Raza Naqvi

MTY Food (TSX:MTY) posts $24.9M Q4 profit. A consumer stock to buy? — Image source: © Phongphan5922 | Megapixl.com

Financial performance of MTY Food (TSX:MTY)

In Q4 2021, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 22 per cent year-over-year (YoY) to C$ 42.8 million. Meanwhile, the adjusted EBITDA increased to a record-high of C$ 168.6 million for the full year.

Notably, the cash flows from operating activities were C$ 31.9 million for the fourth quarter and C$ 139.3 million in 2021.

The net income amounted to C$ 24.9 million in Q4 2021 compared to C$ 20.1 million in the fourth quarter of 2020. Meanwhile, in 2021, the net income was C$ 85.6 million compared to a net loss of C$ 37.1 million in 2020.

In January, MTY Food said that its quarterly dividend payment increased to 21.0¢ per share from 18.5¢ per share, reflecting an increase of 14 per cent.

Also Read: 5 best TSX consumer defensive stocks of 2021

It is important to note that MTY Food's revenue increased eight per cent YoY to C$ 551.9 million in 2021, and it was driven due to a 20 per cent increase from retail channels, distribution, and food processing in Canada.

Additionally, the company registered 10 per cent growth from its franchising segment in the United States and other countries.

Bottom line

In its financial statement, MTY Food said it is monitoring the pandemic situation and is taking the necessary steps to address the issues this situation may have on business operations in the future.

The company said that its sales were back to the pre-pandemic levels for many of its brands and is making progress in the right direction.

MTY Food runs various brands of restaurants, including names like Big Smoke Burger, Croissant Plus, Shushiman, and Cafe Depot, among others.

Also Read: Dollarama (TSX:DOL) & Lululemon: Why are the consumer stocks trending?

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