MTY Food Group Exposed

The following is the opinion of this website.

Cold Stone Creamery is a subsidiary of Kahala Brands, which in turn is a subsidiary of MTY Food Group, Inc. (TSX:MTY).1 According to its 2017 Annual Report, MTY Food Group acquired Kahala in 2016 for a “total consideration of $394.2 million”. Cold Stone Creamery generated approximately 25% of MTY Food Group’s network sales the same year. MTY Food Group’s 2018 Annual Report states “Cold Stone Creamery is the only concept that currently represents more than 10% of system sales, generating approximately 21% of the total sales of MTY’s network during the year.” The following year, Cold Stone Creamery’s percentage of sales dipped to 17%.2 Though Cold Stone Creamery’s contribution to MTY Food Group’s overall sales fell eight percentage points in two years2, it seems Cold Stone Creamery’s success is principal to MTY Food Group’s performance and thus of considerable interest to MTY Food Group’s investors.

Because Cold Stone Creamery is MTY Food Group’s perennial flagship brand in terms of sales, securities and franchise-network investors researching MTY Food Group and or any of its franchise opportunities depend on accurate and reliable quantitative and qualitative information communicated by the companies in various forms such as MTY Food Group’s quarterly earnings calls, Cold Stone Creamery’s Franchise Disclosure Document and Cold Stone Creamery’s franchise promotion website. These sources may provide important information that investors might rely such as the number of international and domestic locations in operation, the potential for franchisee profits, investor demand, unit growth trends, and or unit growth rates for its franchises. These investors may then use this information to make buy, sell and hold decisions regarding MTY Food Group securities or franchise-network investments. If that information is false or misleading, the investor may be influenced to make a decision that does not suit his or her objective.

This website is dedicated to facilitating MTY Food Group securities and franchise-network investors in their information gathering process. We do this by compiling publications that contain information that the investing community might find trustworthy and analytically relevant such as federal disclosures, government reports, documents produced by Cold Stone Creamery in the course of litigation, news articles, etc. We then compare that information to statements made by MTY Food Group, its CEO, Eric Lefebvre or Cold Stone Creamery that promote securities or franchise investments, corporate goodwill or provide potential other benefits to MTY Food Group and or Cold Stone Creamery. Investors might then be better situated to subjectively determine whether certain MTY Food Group, CEO Eric Lefebvre or Cold Stone Creamery statements are false or misleading, or whether they may be relied upon as true.

Through our various reports, we hope the investment community is able to measure MTY Food Group’s statements and actions against the “honesty and… integrity” principles set forth in its corporate governance policies and its Code of Ethics to form a certain level of investor trust or distrust. In addition, based on the information and data presented on, we hope to better position the investor to project MTY Food Group’s ability to earn a reasonable—sustained profit? Investors, however, should recognize that, though voluminous, our information likely represents a small subset of the relevant—useful information. The remainder is likely locked in the internal memos and spoken words of MTY Food Group’s board of directors and management, which is why the qualitative component of the investor’s pricing model and the investor’s measure of trust or distrust is so particularly important.

According to Diligent Insights, “corporate governance is a structure whereby the shareholders own the operation, managers run the operation and board directors oversee the operation as agents of the shareholders.” It goes on to note, “[t]he strength of a company’s corporate governance principles can lead to either a higher or a lower valuation of a company.” We read this to say that, the qualitative component of an investment pricing model is principal, or perhaps even superior, to the quantitative component.


  1. This website does not provide legal or investment advice. Any questions relating to MTY Food Group or any of its subsidiaries’ compliance with the Federal Trade Commission’s Franchise Rule, Canadian law, U.S. securities law, or any other applicable federal or state laws, including whether any statement by or on behalf of MTY Food Group or its subsidiaries published to this website is potentially materially “misleading” or constitutes a “misrepresentation” under the U.S. Franchise Rule or whether any actions taken by MTY Food Group or its subsidiaries is evidence of a fraudulent inducement or represents a potential violation of MTY Food Group’s Code of Ethics, should be referred to your attorney.
  2. MTY Food Group acquired Papa Murphy’s on May 23, 2019. It’s 2019 Annual Report states “Cold Stone Creamery and Papa Murphy’s are the only concepts that currently represents [sic] more than 10% of system sales, generating approximately 17% and 14% respectively of the total sales of MTY’s network during the year.”

CNBC Documentary

In December 2010, CNBC televised a documentary titled “Behind the Counter: The Untold Story of Franchising”. During the program, Cold Stone Creamery was “portrayed in a negative light.” The program was eventually reedited. The final version is available above. For more on this document, visit

Photos from the internet