Earnings Flash (MTY.TO) MTY Food Group Inc. Reports Q2 Revenue C$279.9M

MTY Food Group (MTY.TO) Q2 adjusted earnings fell to C$0.97 per diluted share, from C$1.17 per diluted share, in the prior year period. Analysts polled by FactSet had forecast adjusted earnings of C$1.12 per share for the quarter ended May 31. Company revenue declined 8.2% to C$279.9 million over the same period, missing the C$292.5 million forecast. The decline was mainly due to lower revenue from corporate stores and from turnkey projects, MTY said. The company, which announced a strategic review last November, said Friday that it is closing 68 of its corporate locations, which had combined losses of over C$10 million in the last 12 months. MTY is negotiating early termination of the leases, which could cost between C$10 million and C$12 million. Macro-economic conditions continue to create short-term headwinds for its business, including increases in oil and gas prices, which it believes has impacted consumer spending in its restaurants. MTY Foods will pay a regular quarterly dividend of C$0.37 per share on Aug 14, to shareholders of record on Aug 4.