Like most restaurant chains, MTY has suffered dramatically during the pandemic. However, the franchisor is making a strong comeback thanks to its solid balance sheet management. It has just announced a second major acquisition in a few weeks: Wetzel’s Pretzels, a franchisor and operator of food kiosks.
The Globe and Mail’s columnist David Berman wonders if this acquisition will give MTY a new boost. He turned to Aaron Lanni, portfolio manager and partner at Medici, to discuss the latest transaction announced by the Montreal-based restaurant operator.
With the purchase of Wetzel’s Pretzels — a US $207 million transaction — MTY acquired a network of more than 350 locations in the United States, in Canada and in Panama.
In August, MTY Group made another major acquisition, BBQ Holdings, for US$200 million
“It is probably one of the best acquisitions that we’ve seen them do in the past three to five years,” Aaron Lanni told The Globe & Mail.
“Usually, MTY will buy something that’s either mature, not really growing or slightly declining –and they hope to deliver growth,” explains the portfolio manager.
“But this one is already growing, it’s in high-traffic areas and they paid a reasonable price.”
Read the Globe and Mail article.