After announcing a CEO transition, MTY Food (MTY) got a $1B hostile bid from Foodtastic, which represents a 31% premium to yesterday’s close but sits in-line with 2026 highs — as three years of negative same-store growth…

… and flat EBITDA have put significant pressure on the stock. To be fair, headwinds to growth and profitability are an industry-wide dynamic…

… with food inflation, rising wages, and affordability pressure driving multiple compression across the restaurant industry…

… which has resulted in a wave of take-privates including Wendy’s, Pizza Hut, and Denny’s among others. While being out of the public eye would likely accelerate MTY’s closure of unprofitable stores…

… a deal looks unlikely for now, with the company already rejecting the bid in private and the stock closing ~15% below the offer price.

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