MTY Food Group Inc. (MTY-T) announced plans to shutter 68 underperforming corporate-owned restaurant locations over the next nine months, a move that coincides with a decline in second-quarter profit and revenue.
The Toronto-based operator, which runs brands including KFC, Pizza Pizza, and Swiss Chalet, attributed the contraction to persistent pressure on consumer spending and a challenging operational environment.
The decision to close nearly 70 sites marks a significant strategic retreat for the company, which has historically relied on a mix of franchised and corporate-owned units to drive growth.
By exiting weaker locations, MTY aims to streamline its portfolio and improve overall unit economics, though the move underscores the difficulty of maintaining volume in a cost-conscious market.
Investors are likely to view the closures as a defensive measure rather than a growth catalyst.
The reduction in store count will directly impact top-line revenue in the near term, even as management seeks to stabilize margins by shedding unprofitable assets.