In its earnings report Friday, MTY Food Group Inc. said that the outlook remains highly uncertain as macroeconomic conditions batter the restaurant industry, which has struggled to attract and retain workers as the domestic economy exits the worst of the pandemic.
“At the date of this report, MTY and its franchisees are still facing significant supply chain challenges, which come from inflation and from disruptions and shortages in the supply of certain products. This comes in addition to rising interest rates and increased construction costs,” the company said.
“While some aspects of the business seem to be finding some form of normality, there remains some uncertainty as to what the new baseline is going to be once this period of high volatility fades away.”
The company operates a slate of well-known food court banners, including Manchu Wok, Thai Express, Cold Stone Creamery and mmmuffins.
MTY warned that labour shortages and rising minimum wages threatened its ability to conduct business optimally, and said it expects to see higher labour costs and more overtime pay as a result of the inability to find enough workers.
While MTY did post sales growth of 14 per cent year-over-year, shares fell about three per cent in early trading Friday.
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