TD Securities Upgrades MTY Food Group (TSE:MTY) to "Hold"

Key Points

• TD Securities upgraded MTY Food Group to a “Hold” rating, but the broader analyst sentiment remains cautious with an overall consensus rating of Hold and a C$42.50 price target.
• Several brokerages cut their price targets on MTY, including RBC, Raymond James, Scotia, and Acumen Capital, signaling softer expectations for the stock’s near-term performance.
• The shares were down 2.1% and traded near 52-week lows, while the company also faces concerns tied to weak restaurant traffic and Papa Murphy’s store closures.

MTY Food Group (TSE:MTY - Get Free Report) was upgraded by TD Securities to a "hold" rating in a research note issued on Monday,Zacks.com reports.

A number of other brokerages also recently issued reports on MTY. Royal Bank Of Canada cut their target price on MTY Food Group from C$46.00 to C$41.00 and set a "sector perform" rating for the company in a research note on Monday. Raymond James Financial decreased their price target on MTY Food Group from C$45.00 to C$40.00 and set a "market perform" rating on the stock in a research note on Monday. Acumen Capital dropped their price objective on MTY Food Group from C$50.00 to C$48.00 and set a "buy" rating on the stock in a report on Monday. Scotia cut their price objective on MTY Food Group from C$45.00 to C$40.00 and set a "sector perform" rating for the company in a research report on Monday. Finally, Scotiabank reduced their target price on MTY Food Group from C$46.00 to C$45.00 and set a "sector perform" rating for the company in a report on Monday, April 13th. Two analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of C$42.50.

MTY Food Group Trading Down 2.1%

Shares of MTY Food Group stock opened at C$32.66 on Monday. The company has a quick ratio of 0.56, a current ratio of 0.73 and a debt-to-equity ratio of 123.64. The firm has a market cap of C$745.99 million, a price-to-earnings ratio of 4.85, a price-to-earnings-growth ratio of 0.75 and a beta of 1.00. MTY Food Group has a 52-week low of C$31.87 and a 52-week high of C$45.90. The company's 50-day simple moving average is C$38.30 and its 200-day simple moving average is C$39.60.

MTY Food Group News Summary

Here are the key news stories impacting MTY Food Group this week:

• Positive Sentiment: MTY Food Group declared a quarterly dividend of C$0.37 per share, implying an annualized yield of about 4.5% for income-focused investors.
• Neutral Sentiment: Several analysts cut their price targets on MTY, but most kept ratings in the hold-to-buy range, suggesting reduced expectations rather than a major thesis change.
• Negative Sentiment: News reports said Papa Murphy’s is closing dozens of underperforming stores, including possible closures of up to 50 locations, signaling ongoing operational weakness and restructuring pressure.
• Negative Sentiment: Additional coverage described Papa Murphy’s parent MTY as struggling to attract customers to its brands, reinforcing concerns about softer same-store demand and profitability.
• Negative Sentiment: Analyst downgrades and lower targets from TD, RBC, National Bank Financial, Raymond James, Scotia, and Acumen Capital point to caution around MTY’s near-term growth outlook.

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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