MTY Food Group (TSE:MTY) Shares Up 1.6% After Dividend Announcement

Key Points

• MTY Food Group shares rose 1.6% after announcing a quarterly dividend increase to C$0.50 per share from C$0.37, equivalent to C$2.00 annually and a 5.3% yield.
• Analyst sentiment remains mostly neutral: seven analysts rate the stock Hold, one rates it Buy, and the consensus price target is C$41.12.
• For its latest reported quarter, MTY posted earnings of C$1.26 per share on C$277.73 million in revenue.

Shares of MTY Food Group Inc. (TSE:MTY - Get Free Report) rose 1.6% during trading on Tuesday after the company announced a dividend. The company traded as high as C$33.01 and last traded at C$32.75. Approximately 124,139 shares traded hands during mid-day trading, an increase of 36% from the average session volume of 91,421 shares. The stock had previously closed at C$32.25.The newly announced dividend which will be paid on Friday, November 13th. Stockholders of record on Friday, November 13th will be given a $0.50 dividend. This is a boost from MTY Food Group's previous quarterly dividend of $0.37. This represents a $2.00 dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date of this dividend is Tuesday, November 3rd. MTY Food Group's payout ratio is presently 30.06%.

Analyst Ratings Changes

MTY has been the subject of a number of analyst reports. TD Securities raised shares of MTY Food Group to a "hold" rating in a research report on Monday, July 13th. National Bank Financial cut their price target on shares of MTY Food Group from C$40.00 to C$37.00 and set a "sector perform" rating on the stock in a research report on Tuesday, October 13th. Raymond James Financial reduced their price objective on shares of MTY Food Group from C$40.00 to C$35.00 and set a "market perform" rating for the company in a research note on Tuesday, October 13th. Royal Bank Of Canada lowered their target price on MTY Food Group from C$46.00 to C$41.00 and set a "sector perform" rating on the stock in a research report on Monday, July 13th. Finally, TD set a C$38.00 price target on MTY Food Group and gave the company a "hold" rating in a research report on Thursday, October 8th. One analyst has rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of C$41.12.

MTY Food Group Price Performance

The company has a quick ratio of 0.56, a current ratio of 0.75 and a debt-to-equity ratio of 117.99. The firm has a market cap of C$857.68 million, a P/E ratio of 7.84, a PEG ratio of 0.75 and a beta of 0.98. The business has a fifty day moving average of C$32.59 and a 200 day moving average of C$37.12.

MTY Food Group (TSE:MTY - Get Free Report) last released its quarterly earnings data on Friday, October 9th. The company reported C$1.26 earnings per share (EPS) for the quarter. The firm had revenue of C$277.73 million for the quarter. MTY Food Group had a return on equity of 12.54% and a net margin of 9.67%. On average, sell-side analysts anticipate that MTY Food Group Inc. will post 4.49 earnings per share for the current year.

MTY Food Group Company Profile

MTY Group franchises and operates quick-service, fast casual and casual dining restaurants over 80 different banners in Canada, the US and Internationally. Based in Montreal, MTY is a family whose heart beats to the rhythm of its brands, the very soul of its multi-branded strategy. For over 45 years, it has been increasing its presence by delivering new concepts of restaurants, making acquisitions, and forging strategic alliances, which have allowed it to reach new heights year after year. By combining new trends with operational know-how, the brands forming the MTY Group now touch the lives of millions of people every year.

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