Screened September 29, 2026 · TSX: MTY · Q2 fiscal 2026 filings (quarter ended May 31, 2026)

Is MTY Food Group (MTY) halal?

MTY Food Group Inc. (TSX: MTY) franchises and operates over 7,000 restaurants across 80+ banners — but its C$594 million of long-term debt is about 82% of market cap, a decisive FAIL on the debt gate.

The two-gate Shariah screen

Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).

Gate one: the business — no haram line disclosed as a segment

MTY Food Group is 'one of the largest franchisors and operators of multiple restaurant concepts worldwide' (Q2 2026 press release, July 10, 2026; founded 1979, headquarters Saint-Laurent, Quebec). At May 31, 2026 it had 7,040 locations — 6,808 franchised or under operator agreements and 232 corporate-owned — across 80+ banners including Thaï Express, Vanellis, La Diperie, Cold Stone Creamery, Pinkberry, Papa Murphy's, Wetzel's Pretzels, TacoTime, Mr. Sub, Sushi Shop, Baton Rouge, Scores, Madisons New York Grill & Bar, and Timothy's World Coffee (57% of locations in the US, 35% in Canada, 8% international). Its reported segments are franchise (C$98.6 million revenue), corporate stores (C$111.7 million), food processing/distribution/retail (C$39.3 million), and promotional funds (C$31.9 million). No haram line is disclosed as a segment; the filings disclose no alcohol-revenue figure for the casual-dining concepts that serve alcohol (Baton Rouge, Scores, Madisons, Steak Frites St-Paul), and no figure is estimated here. MTY has no affiliation with Tim Hortons.

Gate two: the ratios — the debt ceiling fails by a wide margin

At May 31, 2026 (unaudited Q2 fiscal 2026 interim statements, C$ thousands): long-term debt of C$594.126 million (revolving credit facility, authorized C$900 million — drawn C$248.0 million CAD plus US$252.0 million at quarter-end), with lease liabilities of C$487.351 million (C$108.1 million current, C$379.3 million non-current) disclosed separately. Cash and cash equivalents were C$63.0 million. With 22.8 million shares at the September 29, 2026 quote of C$32.02, market cap is about C$725 million, so debt-to-market-cap is about 82% — far over the ~33% ceiling. Scholars differ on whether IFRS 16 lease liabilities count toward interest-bearing debt; including them puts the ratio at about 149%, so the FAIL is robust under either definition. On the income gate, interest income of C$54,000 against C$279.9 million of revenue is about 0.02%, well under the ~5% ceiling (the company is a net payer — C$7.34 million of interest expense on long-term debt in the quarter). The debt ratio alone determines this screener's outcome.

What other screeners say

We could not verify any public MTY.TO rating from the three screeners this page tracks: no MTY stock page or verdict surfaced for Zoya, Musaffa, or ShariaPortfolio in searches. No third-party rating is claimed for MTY here.

The bottom line

This screener gives MTY Food Group Inc. (TSX: MTY) a FAIL. The business has no haram line disclosed as a segment, but about C$594 million of long-term debt is roughly 82% of the ~C$725 million market cap — far over the ~33% ceiling, and the fail holds even when lease liabilities are excluded. Substantial debt paydown or a much higher market cap would be needed to change this. Snapshot dated September 29, 2026; re-checked quarterly after earnings.

Sources

• Q2 2026 results press release (MTY Food Group, July 10, 2026)
• Q2 2026 interim consolidated financial statements

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