Author Topic: MTY - MTY Food Group  (Read 21425 times)

mranski

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MTY - MTY Food Group
« on: January 31, 2011, 03:59:30 PM »
I like the look of this company. Anyone have a contrary or corroborating opinion or a post previously.

STRENGTHS
Ongoing fee based franchse income, minimal company staff.
Some decent brands, a few cigar butts, some I don't know, diversity of brands.
Excellent ROE
Low Debt
Decent Growth
Conservative management, shareholder oriented, good track record

WEAKNESSES
Tough sector food retailing
Integration risk of new brands, acquisitions
Price a bit ahead of results.

Any opinion would be appreciated



jeffmori7

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Re: MTY - MTY Food Group
« Reply #1 on: January 31, 2011, 05:35:27 PM »
I am a shareholder too.

What I like about this company is as you said, some decent brands first : Sushi Shop, Thai Express, Cultures, etc. are all brands really popular here in Montreal. We see them a lot in the commercial centers. With the recent trend of "healthy" fast food (unlike burgers or pizza), I think these brands will stay popular and there were there in the beginning so customers are now used to these names.

I also like the management, with Stanley Ma possessing 27% of the share I think and a conservative management financing new acquisition with cash flow only, without using debt.

They grow mainly by acquisition, but I think there is still room to expand the different brands all across Canada. From what I know, they are mainly present in Quebec and Ontario for now. I know they have some restaurants in Middle East too!

On the negative side, sales are not that strong on a year over year basis for existing places.

Good to know that I am not alone as a shareholder on this board!

beerbaron

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Re: MTY - MTY Food Group
« Reply #2 on: January 31, 2011, 06:19:39 PM »
Not exactly a value stock

mranski

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Re: MTY - MTY Food Group
« Reply #3 on: January 31, 2011, 09:04:15 PM »
Didn't mean to suggest i'm a shareholder, i am seriously looking at it.

Seems overvalued at $14 as I think beerbaron is suggesting.

jeffmori7

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Re: MTY - MTY Food Group
« Reply #4 on: February 01, 2011, 03:47:43 PM »
Didn't say either that it is a good investment at the current price. I'm just saying that it is a good "growth" company.

Also, it just started paying a dividend this year to return a part of the always increasing benefit to the shareholders. I prefer that than too expansive acquisition.

mranski

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Re: MTY - MTY Food Group
« Reply #5 on: October 10, 2011, 10:53:11 AM »

mranski

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Re: MTY - MTY Food Group
« Reply #6 on: February 01, 2012, 02:20:38 PM »
MTY controls its own food court. Probably done before but i haven't heard of this idea.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=20120201&archive=cnw&slug=C8532


ItsAValueTrap

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Re: MTY - MTY Food Group
« Reply #7 on: October 25, 2013, 06:59:30 PM »
I figure I'd bump this thread even though I don't own any shares.  Congratulations to anybody who bought and held this stock.

The history of MTY Food Group is *really* interesting in my opinion.  It started out on the Vancouver Stock Exchange (now the TSX Venture), which is kinda shady.  I think back then conglomerates may have been a big thing for these small shady stocks.  Northfield Capital started out that way.  Maybe should who was around back then could give more information on that.

Anyways, for roughly a decade the stock went nowhere.  Stanley Ma owned less than 5% of the company.  MTY back then was involved in a number of other businesses such as selling parking equipment in China.  The other ventures eventually all lost money.  They definitely chased the Internet bubble back then.  Then the bubble burst and the stock started trading below book value.  2003 was a landmark year for Ma as he turned MTY into a pure-play restaurant business and got rid of the Internet bubble business.  He also bought a huge chunk of the company in a large private transaction, boosting his ownership to around a quarter of the company.  He probably didn't anticipate what would come next, but his shares went up 130X times.

His first decade was miserable and then his shares just shot to the moon.

http://glennchan.wordpress.com/2013/10/22/mty-food-group-mty-to-fast-food-faster-growth/
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. " -Buffett

my blog

buylowersellhigh

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Re: MTY - MTY Food Group
« Reply #8 on: January 20, 2014, 05:39:01 PM »
I figure I'd bump this thread even though I don't own any shares.  Congratulations to anybody who bought and held this stock.

The history of MTY Food Group is *really* interesting in my opinion.  It started out on the Vancouver Stock Exchange (now the TSX Venture), which is kinda shady.  I think back then conglomerates may have been a big thing for these small shady stocks.  Northfield Capital started out that way.  Maybe should who was around back then could give more information on that.

Anyways, for roughly a decade the stock went nowhere.  Stanley Ma owned less than 5% of the company.  MTY back then was involved in a number of other businesses such as selling parking equipment in China.  The other ventures eventually all lost money.  They definitely chased the Internet bubble back then.  Then the bubble burst and the stock started trading below book value.  2003 was a landmark year for Ma as he turned MTY into a pure-play restaurant business and got rid of the Internet bubble business.  He also bought a huge chunk of the company in a large private transaction, boosting his ownership to around a quarter of the company.  He probably didn't anticipate what would come next, but his shares went up 130X times.

His first decade was miserable and then his shares just shot to the moon.

http://glennchan.wordpress.com/2013/10/22/mty-food-group-mty-to-fast-food-faster-growth/


Now it's at 32. Definitely not cheap...