Research
Research Alert: Mru: Q2 Fy 26 In Line As Food Same-store Sales Growth Slows
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:MRU delivered Q2 FY 26 (Sep.) results in line with expectations, with revenue of CAD5,113M (+4%) beating by CAD34M and adj-EPS of CAD1.11 (+9%) meeting consensus. Food retail comps decelerated to 1.8% (1.5% Christmas-adjusted) from stronger prior quarter performance, though pharmacy comps remained robust at 5.1%, with prescription drugs up 6.1%. We think the slowdown reflects a more challenging operating environment, though online sales remained strong at 19.8% growth. Management expects the late-quarter Laval produce distribution center strike to impact Q3 results, with stores now generally well-stocked. Gross margins expanded 10 bps to 20.1%, while operating expenses declined 10 bps to 10.5%, demonstrating the company's ability to extract operational efficiencies and maintain pricing discipline. In our view, MRU shows resilience with food basket inflation aligning with 4.3% CPI, though near-term headwinds from labor disputes mirror prior Toronto DC issues.
$MRU