EL7.AI
Stocks•14 July 2026•
1 min read

MTY Food Group Misses Q2 Estimates, Closes 68 Stores Amid Consumer Slowdown

Key Facts

1MTY Food Group reported EPS of $0.70, missing the consensus estimate of $0.81.
2Net income fell sharply to $15.4 million from $57.3 million in the same quarter last year.
3The company is closing 68 underperforming locations, including Papa Murphy's stores, incurring a $7.5 million impairment charge.

Amid rising inflationary pressures affecting consumer purchasing power in North America, MTY Food Group announced disappointing financial results for the second quarter of 2026. The company reported earnings per share (EPS) of $0.70, missing analyst estimates of $0.81. Net income fell sharply to $15.4 million from $57.3 million in the prior-year period, prompting management to close 68 underperforming locations, including Papa Murphy's stores, incurring a $7.5 million impairment charge.

This decline reflects broader challenges in the restaurant sector, with CEO Eric Lefebvre citing softer consumer traffic and the impact of inflation on margins. Compared to peers, same-store sales growth fell by 2.2% in the U.S. and 1.8% in Canada, a trend consistent with market data showing a slowdown in discretionary consumer spending. This performance places the company under pressure relative to larger fast-food chains that have maintained stability through value-focused offerings.

Investors should monitor the effectiveness of the restructuring plan and store closures in improving cash flows during the second half of the year. Existing Home Sales were reported at 4.09 million units (as of July 9, 2026), signaling continued caution in consumer sentiment that may impact the broader retail and dining sectors.