MTY Food Group (TSX:MTY) is a Montreal-based company that operates and franchises quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and around the world. Some of its top brands include Tandori, Panini Pizza, KimChi, and others. Shares of this restaurant stock have climbed 4.9% in 2023 as of close on April 14. The stock is up 12% year over year.
Food prices have been one of the major drivers of inflation in Canada since the beginning of this decade. Dalhousie released its 2023 Canada Food Price Report late in 2022. The report estimated that broader food prices would post growth of 5% to 7% in 2023. The cost of eating at restaurants was expected to rise between 4% and 6%.
This company released its first quarter fiscal 2023 earnings on April 12. In Q1 fiscal 2023, MTY Food Group delivered normalized adjusted EBITDA growth of 79% to $64.0 million. System sales hit a record high of $1.4 billion in the first quarter – up 54% compared to the prior year. Meanwhile, net income attributable to owners was rose to $18.4 million or $0.75 per diluted share compared to $16.6 million or $0.68 per diluted share.
Shares of MTY Food Group currently possess a favourable price-to-earnings ratio of 19. Moreover, it offers a quarterly dividend of $0.25 per share. That represents a modest 1.6% yield. This TSX stock still looks like a solid buy after putting together record earnings in the first quarter of fiscal 2023.