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One of Canada\u2019s most prominent restaurant franchisors wants to gobble up a competitor.<\/p>\n
Foodtastic Inc., the Montreal-based company behind 30 brands including Milestones, Freshii, Second Cup and Dunkin\u2019s forthcoming foray into Canada, went public Tuesday with a takeover offer for MTY Food Group Inc.\u00a0<\/p>\n
MTY, which is also headquartered in Montreal, operates the Thai Express, Manchu Wok, Country Style and Big Smoke Burger banners among others.<\/p>\n
The pitch valued at $982 million came about two weeks after Foodtastic said MTY rebuffed a prior takeover attempt.<\/p>\n
The latest proposal was publicized within minutes of MTY announcing that Victor Mandel, a member of the company\u2019s board, would immediately replace chief executive Eric Lefebvre in the top job.<\/p>\n
MTY offered no reason for the leadership swap and did not immediately comment on Foodtastic\u2019s proposal, but Mandel said in a statement that his appointment \u201cis an opportunity to establish a new chapter for MTY, grounded in accountability, operational excellence and a clear commitment to delivering value for our shareholders.\u201d<\/p>\n
Foodtastic chief executive Peter Mammas said he is making a play for MTY because he long admired the business, but he thinks it has room for improvement.<\/p>\n
\u201cMTY is a great company with excellent opportunities, but it has unfortunately not lived up to its full potential in recent years,\u201d he said in a statement Tuesday.\u00a0<\/p>\n
\u201cWe are very excited about the proposed transaction and believe it would not only deliver full and certain value to MTY\u2019s shareholders but also would be an incredible combination for its franchisees and employees.\u201d<\/p>\n
David Pullara, a marketing instructor at the Schulich School of Business at York University, thinks MTY would be wise to be consider Foodtastic\u2019s pitch.<\/p>\n
\u201cMTY has a lot of brands, but most of them aren\u2019t what I would consider to be destination brands. You eat there because you\u2019re hungry and they\u2019re nearby, not necessarily because you\u2019re craving what they\u2019re selling and you\u2019re travelling to get there,\u201d he said in an email.\u00a0<\/p>\n
\u201cFoodtastic has done a much better of job of brand building and of building craveable brands that diners will seek out.\u201d<\/p>\n
MTY launched a strategic review in November 2025, when its stock was under pressure and rising prices, competition and economic volatility were threatening the business.\u00a0<\/p>\n
The company warned the process could end in a sale, but when it wrapped up last month, there was no buyer and MTY instead opted to reshape its business, including work to optimize its portfolio of brands.<\/p>\n
Foodtastic has charged that MTY has \u201cacquired too many concepts\u2014some good and some bad\u2014and it is not generating organic growth in the aggregate.\u201d<\/p>\n
\u201cWe believe getting MTY\u2019s portfolio back on track requires patient, long-term focus, which is very difficult to do under the short-term pressure of public markets,\u201d Mammas said in a letter to MTY that he published Tuesday.<\/p>\n
Foodtastic\u2019s offer is structured as $43 per MTY share in cash \u2014 a 32 per cent premium on MTY\u2019s current share price.\u00a0<\/p>\n
MTY shares closed at $32.75 on the Toronto Stock Exchange on Monday.<\/p>\n
Foodtastic, which first made a proposal to the MTY board on Oct. 15 and reiterated the plan on Oct. 20, said it was \u201cdisappointed\u201d the offer was rejected.<\/p>\n
\u201cNevertheless, we are confident that MTY\u2019s shareholders will recognize the compelling value of our proposed transaction,\u201d Mammas said in his statement.<\/p>\n
—<\/p>\n
Tara Deschamps, The Canadian Press<\/p>\n
This report by The Canadian Press was first published Nov. 3, 2026.<\/p>\n
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