By Adriano Marchese

MTY Food Group logged a first-quarter profit, though a challenging consumer environment dragged on sales across its restaurant network, particularly in the U.S.

For the three months ended March 1, the Canadian restaurant franchiser and operator posted net income of 36.9 million Canadian dollars ($26.7 million), or C$1.62 a share, up from C$1.7 million, or C$0.07 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.98 a share. According to FactSet, analysts were expecting C$0.81 a share.

MTY operates a large portfolio of restaurant brands across the quick-service, fast-casual and casual dining sectors, often seen in malls or plazas.

Revenue fell to C$267.8 million from C$284.8 million, missing analyst forecasts of a less precipitous decline to C$273.1 million. System sales, which are the total sales generated by all restaurants in the system, fell to C$1.29 billion from C$1.36 billion.

Same-store sales fell 2.5%, with the biggest drag coming from the U.S. which recorded a decline of 3.6%, followed by its international segment, down 1.3%. In Canada, the decline was less sharp, at 0.8%.

Chief Executive Eric Lefebvre said the results reflect a depressed consumer sentiment, but noted that during the current period there have been early signs of improvement in March.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 10, 2026 06:31 ET (10:31 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.