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MTY - MTY Food Group


mranski

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I think this is an awful deal, but I was short-biased on Papa Murphy's so that could just be me. 13 straight quarters of declining SSS in a booming economy is pretty terrible though.

 

As for FCF, MTY is taking on ~U$80 million in debt from Papa Murphy's so FCF may be lower than you expect based on EBITDA. The adjusted EBITDA number they use is pretty fishy as well as they've had recurring "one-time" charges for several years now, and given that they need to close more stores, these should recur again this year.

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  • 6 months later...

Lastest results have been a bit of a disaster in my opinion. It's gonna take longer to integrate this last acquisition, although I've to admit I'm biased against Papa Murphy's purchase, too risky on my book however there are still synergies and cost savings to achieve. Once they trim down these corporate stores we'll have a clearer picture of the deal.

 

I'm surprised this doesn't grab more attention among the CoBF community. I would love to hear your thoughts on the co, specially if they are short biased.

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The Cold Stone Creamery at the honolulu airport was closed when I was there one afternoon in February. It was in a high traffic area where all the other food places were open. There was a sign saying due to unforeseen circumstances. Reading reviews it seems to be closed a lot?

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This is entirely general, take it for what it is worth, but nothing will probably happen. Everyone (well not really) is gonna trip their covenants. The demand chock from this thing is unprecedented. Talked with a PE guy today (but this was Europe), said banks were willing to postphone covenant tests 6-12 months. Few will want to bankrupt solid companies due to temp issues. If Canadian banks are screwed that might be more difficult, no Idea.

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This is entirely general, take it for what it is worth, but nothing will probably happen. Everyone (well not really) is gonna trip their covenants. The demand chock from this thing is unprecedented. Talked with a PE guy today (but this was Europe), said banks were willing to postphone covenant tests 6-12 months. Few will want to bankrupt solid companies due to temp issues. If Canadian banks are screwed that might be more difficult, no Idea.

 

Thank you very much for your help.

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Does anyone know what this is about?

 

https://mtyfoodgroupexposed.org/

 

I am not sure.  My guess would be that it is disgruntled franchisees.

 

Years ago, I looked into Cold Stone Creamery.  I was surprised at the number of locations for sale.  I was even more surprised at how high the fees were.  There were scads of disgruntled franchisees who were complaining, putting their stores up for sale, or closing them.  Did not look like a good situation.

 

Similar thing with the take & bake pizza concept.

 

Maybe things have changed since then?

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