U.S. Chains Buoy Results for MTY Global
Sources: Technomic Ignite Company news and MTY Global Investor Relations
In line with a tumultuous 2020 across the restaurant industry in Canada, MTY Global reported a system sales decline of 24% in Q1 of 2021. The group largely owns mall-based restaurants in Canada, but had its numbers stay afloat thanks to two large U.S. brands, Papa Murphy’s and Cold Stone Creamery.
MTY acquired Papa Murphy’s in May 2019 and has owned Cold Stone Creamery since 2016.
Though it was Papa Murphy’s nearly 1,300 U.S. locations that bolstered the group’s sales, the take-and-bake pizza brand does have 13 locations across Canada. Cold Stone Creamery operates 865 U.S. units, but it does not currently have any stores in Canada.
While MTY built itself on Canadian brands, its reliance on U.S. stores has increased in recent years. Sales in the U.S. made up 61% of the group’s total system sales in 2020, an increase from 48% in 2019.