MTY Reports Second Quarter Results for Fiscal 2026

Segment profits were $59.9 million during the 13 week period ended May 31, 2026 (the “second quarter”), a decrease of $9.4 million compared to the same period in 2025. Impairment charge on right-of-use assets of $7.5 million during the 13 week period as a result of m anagement's decision to close 68 of its corporate locations in the coming months. Net income attributable to owners decreased to $15.4 million, or $0.67 per diluted share compared to $57.3 million, or $2.49 per diluted share in Q2-25. Cash flows provided by operating activities increased 25% or $8.7 million to $43.0 million compared the same period in 2025 . Long-term debt repayments of $15.7 million during the 13 week period with net repayments of $77.5 million since Q2-25.

6 net store openings during the 13 week period. Normalized adjusted EBITDA (1) of $60.2 million during the 13 week period, a decrease of $9.8 million compared to the same period in 2025 . Adjusted earnings per share (1) of $0.97 per diluted share compared to $1.17 in t he same period in 2025. Free cash flows net of lease payments (2) were $32.2 million or $ 1.41 per diluted share. System sales (3) were $1.4 billion during the second quarter. Same stores sales (3) decreased by 2.1% during the second quarter.

(1) This is a non-GAAP measure. Please refer to the “Non-GAAP Measures” section at the end of this press release . (2) See section “Definition of supplementary financial measures” found at the end of this press release. (3) See section “Definition of non-GAAP ratios” found in the Supplemental Information section for definition.

MTY Food Group Inc. (“MTY”, “MTY Group” or the “Company”) (TSX: MTY), one of the largest fra...