Best way to watch .mkv movies on TV


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I want to be able to watch movies on my TV with subtitles. Right now I have an Apple TV and my movies are in .mp4 format. A lot of my movies have Spanish and English audio but some don't and I would like to add subtitles. I can create .mp4 files with subtitles but the Apple TV won't recognize subtitle options. I can select subtitles and audio if I play movies with VLC on my computer. I read that .mkv files are better if you want to add subtitles. I can create .mkv movies and add subtitles and with VLC I can select both subtitles and audio on my computer. The problem is that the Apple TV won't play .mkv movies. My question is: Is there a way to play movies with subtitles through the Apple TV?

I copy my movies to my computer with DVDFab and then I use Handbreak to make the .mp4 or .mkv file. Is there another device that will give me the option to play these files with subtitles on my tv?

I can't use google subler as I have a PC and this is for Macs.

I tried DivX as I have a PS3 too but the resolution gets all messed up and the movies are pixelated.

Any ideas will be appreciated.

Thanks

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