GRAND RAPIDS, Mich., April 12, 2024 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation's premier franchise operator, today reported financial results for the first quarter ended March 31, 2024.
First Quarter Highlights:
- Sales increased 3.3% to $162.8 million compared to $157.7 million for the same period last year.
- Earnings from Operations increased 306.9% to $3.9 million compared to $0.9 million for the same period last year.
- Net Earnings increased 206.3% to $1.6 million compared to a $1.5 million loss for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) increased 82.4% to $9.9 million compared to $5.4 million for the same period last year.
"Company earnings from operations increased significantly in the first quarter compared to last year, driven by profitable value menu sales and decreased inflation in food, paper and labor. Profit means growth in our Wendy's business, and we are excited about the new Wendy's leadership vision for digital investments and technology to support restaurant margin expansion," stated Meritage CEO, Robert E. Schermer, Jr.
The Company is completing renovations across its US restaurant portfolio and building new restaurants under its current development agreements. Acquisitions, renovations, and new restaurant development are integral parts of our restaurant business model, as the Company expands into undeveloped market areas. New restaurant openings continue to provide the Company with a strong earnings catalyst, as guests reward us for contemporary restaurant designs and digital enhancements.
2024 Outlook: Strong Earnings Growth Ahead:
- Sales +5% to +10%
- Earnings from Operations +65% to +75%
- Net Income +145% to +155%
- EBITDA +30% to +40%
The Company is focused on leveraging its robust operating platform and unique in-house restaurant development expertise to deliver consumers the highest level of quality, convenience, and affordability.
The Company's 5-year growth plan includes the acquisition and development of new Wendy's and Morning Belle restaurants, a breakfast-brunch concept owned by the Company. As we plan for the next generation of growth and new capital partners, we remain actively engaged in planning for future strategic events to enhance shareholder value and liquidity.
About the Company:
Meritage Hospitality Group is the nation's premier restaurant operators, currently with approximately 388 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 12,000 employees.
The Company's current and publicly available information pursuant to amended SEC Rule 15c2-11 and FINRA Rule 6432 can be found at www.otcmarkets.com, under the stock symbol MHGU/Disclosures or the Company's website, www.meritagehospitality.com.
SAFE HARBOR STATEMENT
Certain information in this new release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor Statement at http://www.meritagehospitality.com.
Robert E. Schermer, Jr.
Meritage Hospitality Group Inc.
(616) 776-2600 ext. 1012
