The franchisor MTY, owner of the brands Thai Express, Scores, and Tiki-Ming, fell in Trading today, because of “certain allegations recently made by an alleged employee whistleblower”.
The action of the montreal company has lost up to 13% of its value on the Toronto stock Exchange.
Around 11.15 am, the title fell more than 7% to trade at 55,51$. According to Bloomberg, this is the worst shakeout in the market that the company in 14 years. Since Wednesday, the drop is close to 10%.
In a press release published this morning, MTY announced that it was postponing the publication of the results of the fourth quarter, which was to take place next Tuesday.
“Groundless and frivolous”
“This decision is a result of certain allegations recently made by an alleged employee whistleblower. Although MTY is of the opinion that these allegations are without merit and frivolous, the board of directors, by extreme caution, take the time required to treat the issue in an appropriate manner,” said the company.
It is not known whether the allegations relate to the financial results for MTY.
“There is a vacuum of solid information,” commented analyst Michael Glen, of the firm Raymond James, in a note cited by Bloomberg.
MTY is an umbrella for approximately 7,000 restaurants in 41 countries, which have registered a turnover of over a billion dollars last year.