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A fierce takeover battle is emerging around one of Canada’s largest restaurant franchisors, with at least two high-profile bidders now understood to be competing for control of MTY Food Group Inc. in a deal that could value the company well above its recent market price.
MTY, which franchises and operates more than 7,000 restaurant locations across North America under brands including Thai Express, Mucho Burrito, and Cold Stone Creamery, disclosed in November that its board had initiated a formal strategic review, retaining a financial adviser to evaluate options including a potential sale of the business.
Since then, the process has attracted significant interest. Serruya Private Equity, a firm with an established track record in consumer and restaurant investment, has put forward a cash offer of approximately C$52 per share. That figure represents a premium of around 30% to where MTY shares were trading before speculation around a deal began to circulate.
However, Serruya now faces a direct challenge. Recipe Unlimited Corporation — the Toronto-listed owner of Swiss Chalet, Harvey’s, and The Keg — has reportedly tabled a competing offer in excess of C$53 per share, according to people with knowledge of the negotiations. The rival bid raises the possibility that final offers could escalate further as both parties seek to secure the deal.
At the heart of the interest in MTY is its business model. The company operates on an asset-light, franchise-driven basis, collecting royalties and fees from its network of operators rather than owning restaurant properties outright. That structure delivers predictable, recurring cash flows — a quality that has made the company attractive to both private equity acquirers and strategic buyers looking to consolidate within the sector.
MTY’s shares have risen sharply since the strategic review was announced and have continued to appreciate as details of the bidding process have emerged, with the stock now trading at levels that suggest investors are increasingly factoring in a transaction at a meaningful premium.
No binding agreement has been reached. MTY, Serruya Private Equity, and Recipe Unlimited have all declined to comment on the negotiations publicly. The company’s board and its advisers are expected to evaluate final proposals in the coming weeks.
