Financials - July 2025
MTY Reports Second Quarter Results for Fiscal 2025
July 11, 2025 06:00 ET
Net income attributable to owners increased to $57.3 million, or $2.49 per diluted share compared to $27.3 million, or $1.13 per diluted share in Q2-24.
Cash flows provided by operating activities were $40.2 million compared to $40.6 million in Q2-24, a decrease of $0.4 million mainly attributable to lower segment EBITDA.
Franchise segment normalized adjusted EBITDA(1) increased by 3% to attain $54.0 million in the quarter, compared to $52.6 million in Q2-24.
Normalized adjusted EBITDA(1) decreased 5% to reach $70.0 million in the quarter, compared to $73.7 million in Q2-24.
System sales(2) for the quarter increased slightly at $1.5 billion compared to Q2-24.
Free cash flows net of lease payments(1) decreased to $23.6 million in the quarter compared to $24.3 million in Q2-24. Free cash flows net of lease payments per diluted share(3) were $1.03 for the quarter compared to $1.01 in Q2-24.
Ended the quarter with 7,046 locations compared to 7,079 location at the end of the last fiscal year. Stable store count compared to prior quarter with a net decrease of one location.
Adjusted earnings per share(1) of $1.17 per diluted share compared to $1.25 in Q2-24.
Repurchased and cancelled 297,000 shares for a consideration of $12.6 million in Q2-25, bringing the year-to-date total to 584,400 shares for a consideration of $26.4 million.
(1) This is a non-GAAP measure. Please refer to the “Non-GAAP Measures” section at the end of this press release.
(2) See section “Definition of supplementary financial measures” found at the end of this press release.
(3) See section “Definition of non-GAAP ratios” found in the Supplemental Information section for definition.
MONTREAL, July 11, 2025 (GLOBE NEWSWIRE) -- MTY Food Group Inc. (“MTY”, “MTY Group” or the “Company”) (TSX: MTY), one of the largest franchisors and operators of multiple restaurant concepts worldwide, reported today financial results for its second quarter of fiscal 2025 ended May 31, 2025 and declared a quarterly dividend of 33.0¢ per share, payable on August 15, 2025 to shareholders registered in the Company’s records at the end of the business day on August 5, 2025.
“From a same-store sales standpoint, the second quarter reflected a tale of two geographies. In the U.S., what began as volatility in Q1 evolved into broader macroeconomic pressure in Q2, which impacted both traffic and average check across much of our network. That said, Village Inn stood out as a bright spot, and we’re actively rolling out initiatives aimed at reinvigorating the guest experience across our key banners,” said Eric Lefebvre, CEO of MTY. “We believe these are near-term challenges, and we're confident that the steps we're taking will position us well as the environment improves. In contrast, Canada continued to shine, with strong momentum driving solid results, particularly in the casual dining segment. This strength underscores the value of our diversified platform and the resilience of our brands in varied market conditions.”
“While we’re not satisfied with the year-over-year EBITDA performance this quarter, it’s important to note that the impact was primarily concentrated within our Corporate segment, with our Franchise and Retail segments performing better,” Lefebvre continued. “The softness in the Corporate segment was largely driven by some specific banners. We’re actively evaluating strategic options — ranging from accelerating our franchising efforts with one of the banners to implementing broader, transformative changes with the other. We’re confident that these initiatives will strengthen the segment and enhance long-term profitability.”
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Areas announces agreement to acquire Travel Hospitality Services (THS) Delaware North’s airport hospitality division in the U.S.
July 10, 2025
Areas, a global leader in travel dining and retail, has reached an agreement with Delaware North to acquire its United States-based airport food, beverage, and retail business, Travel Hospitality Services (THS). The transaction is subject to regulatory approval in the U.S. and other customary closing conditions.
As part of the agreement, Areas will take over the management of 237 THS locations across 22 U.S. airports, supported by a team of 4,000 employees and generating over $500 million in annual revenue.
This acquisition marks a major milestone in Areas’ growth strategy in the U.S. With the integration of THS, Areas will increase its presence in the country and become a leading travel hospitality operator in the U.S. Upon the closing of the transaction, the combined company will operate a total of 369 locations in 27 airports and 12 travel plazas, and strengthen its workforce in the U.S. with a team of over 6,000 people.
On a global scale, Areas will now generate over $3 billion in annual revenue, with 2,200 points of sale and 24,000 employees across 11 countries.
Óscar Vela, CEO of Areas, said: “This agreement represents a key step forward in Areas’ U.S. growth strategy. It allows us to increase our business in the country, positions us to be a major player in the U.S., and make the country our largest business unit worldwide.”
Carlos Bernal, CEO of Areas USA, said: “I have the utmost respect and admiration for Delaware North and the Jacobs family, and look forward to welcoming the THS team to Areas as we embark on this exciting new chapter. With our shared commitment to exceptional service and a passion for enhancing the traveler experience, we’re poised to revitalize travel hospitality across the U.S.”
Delaware North CEOs Jerry Jacobs Jr., Lou Jacobs and Charlie Jacobs said in a joint statement: “We take immense pride in the work our teams have done in the travel sector, and it was crucial to find the right successor to steward our important relationships and care for our employees and guests. With Areas, we found a great cultural match, backed by an established and notable presence in the industry. Exiting our longstanding U.S. airport hospitality business was a carefully considered decision and will allow us to focus on strategic growth across the remainder of the Delaware North portfolio.”
BDT & MSD Partners served as lead financial advisor to Delaware North; BofA Securities also provided financial advisory services to the company in connection with the transaction. Hogan Lovells served as lead transaction counsel to Delaware North.
Citigroup Global Markets Europe AG served as lead financial advisor and A&O Shearman served as lead transaction counsel to Areas.
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Kura Sushi USA Announces Fiscal Third Quarter 2025 Financial Results
July 08, 2025 16:05 ET
IRVINE, Calif., July 08, 2025 (GLOBE NEWSWIRE) -- Kura Sushi USA, Inc. (“Kura Sushi” or the “Company”) (NASDAQ: KRUS), a technology-enabled Japanese restaurant concept, today announced financial results for the fiscal third quarter ended May 31, 2025.
Fiscal Third Quarter 2025 Highlights
Total sales were $74.0 million, compared to $63.1 million in the third quarter of 2024;
Comparable restaurant sales decreased 2.1% for the third quarter of 2025 as compared to the third quarter of 2024;
Operating loss was $0.2 million, compared to an operating loss of $1.2 million in the third quarter of 2024;
Net income was $0.6 million, or $0.05 per diluted share, compared to net loss of $0.6 million, or $(0.05) per diluted share, in the third quarter of 2024;
Adjusted net income* was $0.6 million, or $0.05 per diluted share, compared to an adjusted net income* of four thousand dollars or $0.00 per diluted share, in the third quarter of 2024;
Restaurant-level operating profit* was $13.5 million, or 18.2% of sales;
Adjusted EBITDA* was $5.4 million; and
Three new restaurants opened during the fiscal third quarter of 2025.
*Adjusted net income (loss), Restaurant-level operating profit and Adjusted EBITDA are non-GAAP measures and are defined below under “Key Financial Definitions.” Please see the reconciliation of non-GAAP measures accompanying this release. See also “Non-GAAP Financial Measures” below.
Hajime Uba, President and Chief Executive Officer of Kura Sushi, stated, “The third quarter was a very busy one for us, between rolling out the new reservation system, investigating new market opportunities, and building out our IP pipeline and strategizing on how to get the most out of our Bikkurapon collaborations. I’m extremely pleased with the results on all three fronts, and very proud of the efforts by our team members to capture the full opportunity of the summer season and set ourselves up for a great fiscal 2026.”
Review of Fiscal Third Quarter 2025 Financial Results
Total sales were $74.0 million compared to $63.1 million in the third quarter of 2024. Comparable restaurant sales decreased 2.1%, consisting of negative traffic of 2.9% and price/mix of 0.8% for the third quarter of 2025 as compared to the third quarter of 2024.
Food and beverage costs as a percentage of sales were 28.3% compared to 29.2% in the third quarter of 2024. The decrease is primarily due to increases in menu prices and supply chain initiatives, partially offset by food cost inflation.
Labor and related costs as a percentage of sales were 33.1% compared to 32.6% in the third quarter of 2024. The increase is primarily due to increases in wage rates, partially offset by increases in menu prices and operational efficiencies.
Occupancy and related expenses were $5.5 million compared to $4.3 million in the third quarter of 2024. The increase is primarily due to thirteen new restaurants opening since the third quarter of 2024.
Other costs as a percentage of sales were 14.7% compared to 14.1% the third quarter of 2024. The increase is primarily driven by utilities, repairs and maintenance, partially offset by lower marketing expenses.
General and administrative expenses were $8.7 million compared to $8.9 million in the third quarter of 2024. As a percentage of sales, general and administrative expenses decreased to 11.8%, as compared to 14.0% in the third quarter of 2024, primarily due to sales leverage and a decrease in professional fees and litigation expenses.
Operating loss was $0.2 million compared to an operating loss of $1.2 million in the third quarter of 2024.
Income tax expense was $55 thousand compared to income tax expense of $60 thousand in the third quarter of 2024.
Net income was $0.6 million, or $0.05 per diluted share, compared to net loss of $0.6 million, or $(0.05) per diluted share, in the third quarter of 2024.
Adjusted net income* was $0.6 million, or $0.05 per diluted share, compared to adjusted net income* of four thousand dollars or $0.00 per diluted share, in the third quarter of 2024.
Restaurant-level operating profit* was $13.5 million, or 18.2% of sales, compared to $12.6 million, or 20.0% of sales, in the third quarter of 2024.
Adjusted EBITDA* was $5.4 million compared to $4.5 million in the third quarter of 2024.
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Darden Restaurants Reports Fiscal 2025 Fourth Quarter and Full Year Results; Increases Quarterly Dividend; Authorizes New $1 Billion Share Repurchase Program; And Provides Fiscal 2026 Outlook
Jun 20, 2025, 07:00 ET
ORLANDO, Fla., June 20, 2025 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the fourth quarter and fiscal year ended May 25, 2025.
Fourth Quarter 2025 Financial Highlights
Total sales increased 10.6% to $3.3 billion driven by a blended same-restaurant sales1 increase of 4.6% and sales from the acquisition of 103 Chuy's Tex Mex (Chuy's) restaurants and 25 net new restaurants
Same-restaurant sales:
Reported diluted net earnings per share from continuing operations were $2.58
Excluding $0.40 of Chuy's transaction and integration related costs and costs from restaurant closures, adjusted diluted net earnings per share from continuing operations were $2.98, an increase of 12.5%3
The Company repurchased $51 million of its outstanding common stock
Fiscal 2025 Financial Highlights
Total sales increased 6.0% to $12.1 billion driven by a blended same-restaurant sales1, 2 increase of 2.0% and sales from the acquisition of 103 Chuy's restaurants and 25 net new restaurants
Same-restaurant sales:
Reported diluted net earnings per share from continuing operations were $8.88
Excluding $0.67 of Chuy's transaction and integration related costs and costs from restaurant closures, adjusted diluted net earnings per share from continuing operations were $9.55, an increase of 7.5%3
"We had a strong quarter with same-restaurant sales and earnings growth that exceeded our expectations," said Darden President & CEO Rick Cardenas. "Our adherence to our winning strategy, anchored in our four competitive advantages and being brilliant with the basics, led to a successful year. Our strategy remains the right one for the company, and we will continue to execute it to drive growth and long-term shareholder value."
Segment Performance
During the fourth quarter of fiscal 2025, the Company changed its reporting of segment profit to exclude pre-opening costs. Fiscal 2024 figures were recast for comparability. Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Segment profit excludes non-cash real estate related expenses. Sales and profits from Chuy's restaurants are included within the Other Business segment from the date of acquisition forward.
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Thompson Street Capital Partners Acquires Bubbakoo’s Burritos, a Rapidly Growing Mexican-Fusion Fast-Casual Franchisor
Jun 18, 2025 6:30 AM Eastern Daylight Time
ST. LOUIS--(BUSINESS WIRE)--Thompson Street Capital Partners (TSCP), a private equity firm based in St. Louis, announced today it has acquired Bubbakoo’s Burritos (Bubbakoo’s), a New Jersey-based franchisor of fast-casual Mexican-fusion restaurants. Terms of the transaction were not disclosed.
Founded in 2008 in Wall Township, New Jersey by restaurant industry veterans Bill Hart and Paul Altero, Bubbakoo’s delivers a bold twist on traditional Mexican fare. With a focus on made-to-order food and a vibrant restaurant experience, Bubbakoo’s began franchising in 2015. The brand has since expanded to more than 130 locations across 15 states, primarily along the East Coast and Midwest.
This acquisition comes at a time when the fast-casual category continues to outperform broader foodservice segments, driven by evolving consumer preferences for flavorful, customizable cuisine and growing investor appetite for scalable restaurant concepts.
“Bubbakoo’s has created an innovative and compelling brand that resonates with a broad and growing customer base,” said Bob Dunn, Managing Partner at TSCP. “Bill and Paul have built something special—an exciting concept with strong franchisee relationships, consistent unit growth, and a passionate following. We are thrilled to partner with the team as they enter this next phase of expansion.”
“We see tremendous opportunity to support Bubbakoo’s continued growth by investing in technology, brand development, infrastructure, and franchisee support systems,” said Joe St. Geme, Managing Director at TSCP. “The Company has built a strong foundation, and our team is eager to help accelerate growth while maintaining the culture and values that have made Bubbakoo’s a success.”
“From our earliest days in New Jersey to now having more than 130 locations across the country, we’ve been incredibly proud to see our vision resonate with guests, franchisees, and communities,” said Mr. Hart, Co-Founder of Bubbakoo’s. “Our growth has always been grounded in our commitment to food quality, hospitality and a culture that values individuality and innovation.”
“Thompson Street Capital Partners brings deep experience in scaling founder-led businesses and shares our passion for supporting franchisees and delivering great experiences to customers,” added Mr. Altero, Co-Founder of Bubbakoo’s. “With their support, we’re confident Bubbakoo’s can accelerate its growth into new markets, invest in technology and infrastructure, and continue building a world-class franchise system.”
Sidley Austin acted as legal advisor to TSCP.
About Thompson Street Capital Partners
Thompson Street Capital Partners (tscp.com) is a middle-market private equity firm that helps transform already exceptional businesses into market leaders. Based in St. Louis, Missouri, TSCP invests globally in the life sciences and healthcare, software and technology, business and consumer services and products sectors. TSCP partners with management teams to increase value by accelerating growth, both organically and via complementary acquisitions.
View source version at Thompson Street Capital Partners
