67 WALL STREET, New York - March 17, 2014 - The Wall Street Transcript has just published its Restaurants Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Emerging Market Expansion - Store Sales Growth Trends - Cautious Consumer Spending - Restaurant Trends in China - Value for Consumers - Quick Casual Restaurant Growth
Companies include: MTY Food Group Inc. (MTY.TO) and many more.
In the following excerpt from the Restaurants Report, the CFO of MTY Food Group Inc. (MTY.TO) discusses company strategy and the outlook for this vital industry:
TWST: What is your overall growth strategy, and where are the specific areas where you plan to focus?
Mr. Lefebvre: Our growth strategy is twofold. The first part of the strategy is to continue to expand the existing brands that we have. We have some really excellent brands in our portfolio, and we want to see those continue to grow. We want to keep expanding, and we want to keep innovation going. There is still a lot of room for us in Canada and even in the U.S. We have a relatively small footprint in the United States, and we would like to expand that. There is a lot of value there that we can get for our shareholders through that expansion. We have also been very acquisitive over the past 10 years I would say, and that acquisition activity remains a very important core of our strategy. We want to acquire good brands with good growth potential for reasonable prices.
TWST: I saw that you recently opened a restaurant in Saudi Arabia. How important is the international market outside of North America to your strategy?
Mr. Lefebvre: There is a lot of value in the international market. We are in a number of countries - mainly in the Middle East. We are in the U.K.; we are in Lebanon, Qatar, Bahrain, and Saudi Arabia, Kuwait and a number of other countries. This is a good market for us. It is a market that is growing really fast at the moment, especially in the quick-service environment. People there tend to have a lot of appetite for North American brands. So there is a terrific opportunity for us there.
For MTY, it is a relatively hands-off model, where we have a master franchisee in the country that takes care of the franchising and takes care of the operations and everything else that the franchisees in the country need. We share the royalties that are collected at the end of every month with the master franchisee. So it is a relatively risk-free model for us, where we have a lot of rewards and the downside is very limited.
TWST: Do you have that same type of franchise model for restaurants in North America?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.