MTY Food Group: Betting On Growth With Aligned Insiders (Archive)
Betting on MTY’s high-ROIC franchise growth and strongly aligned insider ownership.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- MTY is a restaurants business that is a highly successful serial acquirer; 24% revenue CAGR, 22% EBITDA CAGR, 29% average ROIC over the past 15 years.
- Franchise growth is the most important driver for MTY's performance. As of last week, there's a new catalyst to boost the company's franchised business towards new heights and all-time-highs.
- Insiders hold a 19.46% stake in the business. Moreover, the CEO and CFO have been increasing their stake via open market purchases.
- My DCF valuation shows a 29% upside in the stock.
- Technical analysis also shows upside potential, on both an absolute and relative to S&P 500 basis.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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