Dive Brief:
- MTY Food Group said on Monday that its board of directors initiated a strategic review of its operations and engaged a financial advisor to “identify, review and evaluate potential strategic alternatives,” the company said in a press statement.
- The company, which owns a wide range of brands with more than 7,000 total locations, said it is exploring various options, including a sale of all or part of its business and is continuing its current business plan. However, there are no assurances that any sale will occur, the company said, adding that it won’t make any further comments unless when appropriate or required by law.
- Selling any of its brands would mark a significant shift in MTY’s strategy; the company has been a major acquirer of brands, expanding its portfolio in recent years with buyouts of Wetzel’s Pretzels, BBQ Holdings and Papa Murphy’s.
Dive Insight:
One brand that it may consider selling is Papa Murphy’s, which has struggled in recent quarters.
Papa Murphy’s has closed a number of underperforming locations over the past year, allowing it to concentrate resources to support markets and stores with strong growth and guest engagement, MTY CEO and President Eric Lefebvre said during an October earnings call. Recent openings have tended to perform well, as it focuses on markets with growth potential. For example, a recent opening in Deer Park, Washington, generated sales over twice the brand’s average unit volume.
MTY also reworked Papa Murphy’s loyalty program to make it simpler and more transparent. It moved away from a points-for-dollars model to one that gives customers 10 points for every full-size pizza purchased.
MTY’s sales during the third quarter were stable at $1.5 billion, but same-store sales did not hit the level management expected, Lefebvre said.
Canadian same-store sales were flat during the quarter. U.S. same-store sales declined, according to its earnings report, but Cold Stone, SweetFrog and Village Inn performed well during the third quarter, Lefebvre said. Street-based concepts did well, including breakfast and sushi brands, but they were offset by a 2.5% decline in sales at mall-based locations, he added.
The company’s fourth quarter will likely be a mixed bag as well.
“We've seen continued volatility in the U.S., similar to the trends experienced so far in 2025, while our Canadian operations are showing signs of improvement across most of our banners,” Lefebvre said. “Although this reflects just one month of the quarter, it reinforces the importance of our diverse portfolio as we navigate these market dynamics.”
