Montreal restaurant operator Foodtastic Inc. took its pursuit of MTY Food Group Inc. public, offering C$43 a share in cash for the owner of Cold Stone Creamery and Wetzel’s Pretzels after the franchisor’s board turned it down twice in October.
The proposal, about 32% above MTY’s closing price on Oct. 30, values the Toronto-listed company’s equity at roughly C$1 billion and its enterprise value at about C$1.5 billion including debt. Foodtastic, led by Chief Executive Peter Mammas, released a letter to the board Tuesday arguing that MTY hasn’t lived up to its potential and that shareholders deserve to weigh the offer. It said its financing partners would finalize funding once a definitive agreement is reached and it gets access to due diligence.
A board that already said no
MTY responded hours later that its directors had unanimously rejected nonbinding proposals at the same price dated Oct. 15 and Oct. 20 and had formally ended discussions. The company noted that Foodtastic had been granted several extensions of an exclusivity period during MTY’s strategic review to line up financing and complete a transaction.
That review, launched in November 2025 and overseen by a special committee of independent directors, ended Oct. 9 with a decision not to sell the company or its parts. Instead, MTY raised its quarterly dividend 35%, restarted share buybacks and said it would shift further toward pure franchising and away from company-run restaurants.
A new chief executive
On the same day Foodtastic went public, MTY said director Victor Mandel had replaced Eric Lefebvre as chief executive, effective immediately, in a transition the company described as mutually agreed.
MTY franchises and operates nearly 7,000 locations under more than 80 banners in Canada, the U.S. and abroad. Foodtastic runs about 1,200 restaurants, including Second Cup, Milestones and Freshii. Any deal would require the support of MTY’s board or a direct appeal to shareholders, an option Foodtastic signaled it may consider if talks don’t resume.
