MTY Food Group will pay C$0.50 a share after raising its quarterly dividend by 35%. The decision comes as revenue and earnings fall, same-store sales weaken and the company plans more restaurant closures.
In the 13 weeks ended August 30, same-store sales fell across MTY Food Group's reported markets. The Canadian franchisor announced the decline and the end of its strategic review on October 9, 2026, while raising its quarterly dividend 35% to C$0.50 a share.
MTY plans to pursue its strategy independently rather than proceed with a sale or another major transaction. The company is putting efficiency and shareholder returns ahead of a sale, with plans to restart share buybacks and assess a substantial issuer bid, subject to applicable conditions and approvals. It also plans to refine its brand portfolio and move toward an asset-light franchising model. Those changes have not yet been completed. MTY expects to close more corporate restaurants in the fourth quarter. The Winnipeg Free Press reported the review's conclusion.
MTY began its strategic review on November 17, 2025, hiring a financial adviser to consider a sale of the entire company, a sale of parts of the business, and other strategic alternatives.
At established locations, same-store sales fell 1.9% across MTY's network. International sales dropped 9.1%, the steepest decline; U.S. same-store sales fell 2.7%, while Canada's slipped 0.2%. System sales, which capture sales across the restaurant network, held at C$1.46 billion.
MTY closed 146 locations and opened 72 during the quarter, a net reduction of 74 restaurants. That figure included 50 company-operated locations targeted under a previously announced restructuring. More corporate closures would shrink MTY's direct operating footprint. Its planned shift toward franchising would put greater weight on franchise operations rather than company-run restaurants.
Revenue fell 7.1% to C$277.7 million. Normalized adjusted EBITDA, a measure of operating performance before interest, taxes, depreciation and amortization, declined to C$60.8 million from C$74 million. Net income attributable to shareholders was C$24.8 million, down 11.2% from C$27.9 million a year earlier. Earnings per diluted share fell to C$1.08 from C$1.22. MTY also reported quarterly segment profit of C$59.9 million, according to its third-quarter earnings report.
The Globe and Mail reported that MTY's earlier business model was almost entirely franchised, with about 99% of restaurants operating under franchise. The subsequent growth in company-operated locations added direct operating responsibilities; CEO Stanley Ma said MTY now intends to reduce that share and return to a more franchise-focused model.
Digital sales rose 2% to C$279.2 million and accounted for 19.8% of system sales, up from 19.3% a year earlier. That gain did not stop overall same-store sales from falling, particularly in the U.S. and international markets. Growth in one channel has not offset weaker demand at established restaurants.
Cash generation helped support the dividend increase, though the operating trend remains weak. MTY generated C$28.5 million in free cash flow after lease payments, up from C$25.8 million a year earlier, and repaid C$14 million of long-term debt. A separate dividend report covered Tourmaline Oil's payout increase alongside its Topaz share sale. MTY's dividend decision, by contrast, rests on restaurant cash flow and a planned operating reset.
A dividend is a cash distribution, and its durability depends on the company's ability to generate cash while meeting operating and debt obligations. MTY's free cash flow after lease payments rose during the quarter, even as revenue, earnings and same-store sales declined. The higher payout is a capital-allocation choice, not evidence that the business has turned around. Its quarterly dividend rose from C$0.37 to C$0.50 a share. Payment is scheduled for November 13, 2026, to shareholders registered by the end of the business day on November 3.
