- Restaurant franchisor, MTY Food Group (TSX:MTY), has released its previously delayed full-year financial results
- The company had delayed the results due to allegations made by a whistle-blower
- MTY has not released any details about the allegations but maintains they are baseless
- The full year results are largely positive, with full-year earnings up by 30 per cent and net income up by 50 per cent
- MTY Food Group (TSX:MTY) was up 3.78 per cent, with shares currently trading for C$51.65
Restaurant franchisor, MTY Food Group (TSX:MTY), has announced its full-year results after postponing their release due to whistle-blower allegations.
The company announced the delay on February 14 as a result of the allegations made by an MTY employee.
Since announcing the delay, the MTY’s share price has fallen by more than 15 per cent.
MTY has said that the whistle-blowers accusations are baseless but have yet to outline specifically what has been said about the company.
The company used the time to form an audit committee to evaluate the allegations and any resultant effects.
Gary O’Connor, Chairman of the audit committee, confirmed that the whistle-blower is active employee of the MTY Group but also stated he cannot disclose any details.
“Given the timing of the allegations, it was decided by the Board of Directors to be prudent and take the additional time available to compile and review the information.”
He went on to reiterate that the allegations were baseless and that MTY had already evaluated any issues raised.
“We were able to confirm that our positions and judgments were reasonable and as such had no impact on our results and financial statements,” he said.
The company’s full-year results, though delayed, appear largely positive.
MTY increased its earnings in 2019 by 30 per cent, when compared to 2018.
Crucially, net income was up by more than 50 per cent. When the company released its last quarterly results net income was significantly down compared to 2018. In the following week, MTY’s stock fell by 18 per cent.
The company has not announced whether the allegations will ever be made public.
MTY Food Group (TSX:MTY) was up 3.78 per cent, with shares currently trading for C$51.65.