MTY Food Group Inc.
TSX VENTURE : MTY

MTY Food Group Inc.

April 18, 2008 09:31 ET

MTY Food Group Inc.: Q1-2008 Results

MONTREAL, QUEBEC--(Marketwire - April 18, 2008) - MTY Food Group Inc. (MTY) (TSX VENTURE:MTY), franchisor and operator of over 832 quick service restaurants, under the banners of: Tiki Ming, Sukiyaki, La Cremiere, Cultures, Thai Express, Mrs. Vanellis, Veggirama, Caferama, Au Vieux Duluth Express, Yogen Fruz, Carrefour Oriental, Panini Pizza Pasta, Chick 'N' Chick, Franx Supreme, Croissant + Plus, Villa Madina, Kim Chi, TCBY, Sushi Shop and Koya Japan, reported its operating results for the first quarter ended February 29, 2008.

Net income for the 1st quarter ended February 29, 2008 increased to $2.05 million or $0.11 per share ($0.11 per fully diluted share) compared to a net income of $1.82 million or $0.10 per share ($0.10 per fully diluted share) for the same quarter last year, representing a net income increase of 13%.

Total revenue for the quarter increased by 27%, to $7.58 million from $5.99 million for the same quarter last year. Revenue from franchise locations increased by 16% from $4.38 million to $5.09 million for the 2008 first quarter. Revenue from corporate owned locations increased to $2.48 million for the quarter ended February 29, 2008 from $1.60 million for the same quarter last year, representing an increase of 55%.

EBITDA increased from $3.21 million to $3.61 million for the quarter ended February 29, 2008 representing an increase of 13%. EBITDA from franchise locations for the first quarter increased from $3.03 million in 2006 to $3.33 million in 2008 and EBITDA as a percentage of revenue decreased slightly from 65% to 61%. EBITDA from corporate owned locations increased from $0.18 million to $0.28 million and EBITDA as a percentage of revenue from corporate owned locations remained stable at 11%.

System wide sales for the first quarter ended February 29, 2008 amounted to $55.6 million compared to $49.6 million for the same quarter last year, representing an increase of 12%. Sales growth was achieved due to new store openings during the last 12 months. Same store sales for the quarter grew by 2.7% compared to 3.2% for the same quarter in 2007.

Approximately 50 to 60 new locations have been planned for the 2008 fiscal year of which 20 have already opened since the beginning of the fiscal year. Management remains committed and focused on expanding through internal growth and will continue seeking potential acquisitions to further strengthen its market position.

On Behalf of the Board of Directors of

MTY Food Group Inc.

Stanley Ma, Chairman, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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