(Montreal) MTY Food Group reported Thursday that its profit and revenue declined in the second quarter compared with the same period last year, but the Montreal-based company still said it saw what it called encouraging signs after a difficult start to the year.
The restaurant franchisor and operator reported second-quarter profit of $27.3 million, or $1.13 per share, down from $30.4 million, or $1.24 per share, in the same period in 2023.
Network revenues saw a slight decrease of 1% compared to the previous financial year, from 1.47 billion in the second quarter of 2023 to 1.46 billion in the second quarter of 2024.
The company maintains that this decrease in turnover has affected most of its network. It notes that “the reduction in consumer spending due to the current economic situation, including inflationary pressures, has had a negative impact on sales.”
This decline in network revenue also had a negative impact on MTY’s revenue, which fell from $305.2 million in the second quarter of 2023 to $303.7 million in the second quarter of 2024.
MTY Chairman and CEO Eric Lefebvre said in a statement that after a “difficult” winter, U.S. sales grew in the second quarter, as did profitability and margins in franchising activities.
“These areas are key drivers of our business and we are encouraged by the results,” he said.
Separately, MTY announced it will pay a quarterly dividend of 28 cents per share on Aug. 15.
The MTY Group franchises and operates restaurants under more than 90 different banners in Canada, the United States and internationally, including Bâton Rouge, Mikes, Thaï Express and Ben & Florentine.