Overview
- MTY confirmed it hired a financial adviser and is evaluating options that include selling all or parts of the business or continuing with its current plan.
- Reuters reported that TD Bank was engaged to assess a potential sale, though neither MTY nor TD commented on the report.
- Shares jumped about 13% on the announcement before retracing the next day, closing down 7.6% at $35.38 and valuing the company at roughly $808 million.
- The franchisor oversees more than 80 banners across about 7,000 locations, generating most profit from fees and royalties that analysts say appeal to buyout firms.
- Recent results showed third-quarter net income down about 20% year over year on roughly 1% higher revenue, as management navigates softer U.S. demand and higher food and labor costs.