MTY Food Group (MTY:CA)
TD Securities, Raymond James, Scotiabank and National Bank lowered their MTY 12 month target prices to: $32, $35, $36 and $37, respectively. MTY’s third-quarter same-store sales fell 1.9%, and revenue declined to $277.7 million. Free cash flow after lease payments rose to $28.5 million, providing some support despite softer restaurant sales.
Outlook: The target cuts point to a cautious near-term forecast. MTY needs better sales at existing restaurants and evidence that closing underperforming locations improves profitability.
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