DEAR FELLOW SHAREHOLDERS:

Given the financial implications, we believe companies must adopt strong strategies for reducing food waste. But MTY’s response to this critical issue seems sluggish and vague, rife with rhetoric but short on substance. As just one example: for all its talk about plans for measuring food waste, MTY hasn’t actually disclosed any measurements. Thus, we now ask shareholders to weigh in.

For context, SASB Standards includes food waste in its disclosure topics for restaurants, Institutional Shareholder services (ISS) says it’s “become a growing area of concern globally,” and Glass Lewis says it “has significant economic...ramifications.”

Indeed, a study by Champions 12.3—whose leadership includes the CEOs of Nestle, Sodexo, and Rabobank as well as the U.N. Food & Agriculture Organization’s Chief Economist—found that “for every $1 restaurants invested to cut down on food waste, they saved on average $7 in operating costs over a threeyear period.” That’s a 600% return on investment.

MTY’s 2021 Sustainability Report did include a waste management “Roadmap” claiming the company would “work to identify a strategy on waste management in 2022” and “in subsequent years, measure our generated waste across our entire organization.”

While that may certainly seem like a reasonable way to start addressing the issue, for all the report’s generalized statements about waste management (broadly), food waste (specifically) is just vaguely referenced once, in this sentence: “Unused food products in distribution centers and test kitchens are donated to local shelters to reduce food waste.”

Further, neither that report—nor any subsequent sustainability report—includes measurable food waste reduction targets.

In fact, the 2021 report’s only measurable goal for lowering any type of waste was to reduce menu placemats by half in 2024. And while the 2022 and 2023 reports both touted that the placemat goal was met, neither included any other measurable/timebound reduction targets (for food or any other waste).

Moreover, the 2022 report barely mentions food waste, the 2023 report includes just a few vague references to it, and none include any actual food waste measurements.

By contrast, for example, Starbucks disclosed the types and quantities of food and beverages in its waste streams (and disposal methods) back in 20201 and now has a measurable goal to halve food waste by 2030. And Yum! Brands has the same goal.

We agree with BlackRock: “The need for solutions that...lower food waste and provide alternatives to scarce resources has never been greater.”

Thus, whatever MTY may now claim about its waste initiatives, the fact remains that years after publishing its waste management roadmap, it still hasn’t disclosed food waste measurements or reduction targets. Thus, we seek to advance its progress and oversight on the issue. Thank you.