GRAND RAPIDS, Mich., July 17, 2026 (GLOBE NEWSWIRE) -- July 17, 2026. Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation's premier franchise operators, today reported financial results for the second quarter ended June 28, 2026.
Second Quarter Highlights:
- Sales were $150.0 million compared to $163.5 million for the same period last year, which included approximately 40 additional restaurants.
- Restaurant Operating Income was $10.3 million compared to $15.2 million for the same period last year.
- Net (Loss) Earnings was ($13.6) million compared to $0.3 million for the same period last year. Current period included $13.8 million in one-time restructuring and closing costs.
- Adjusted EBITDA (a non-GAAP measure) adjusted for these one-time costs was $2.8 million compared to $8.2 million for the same period last year.
"Despite headwinds from geopolitical uncertainty, reduced marketing and rising gasoline prices impacting consumers, our Wendy's restaurants delivered consistently improved sales trends throughout the quarter. We are forecasting a significant recovery in 2027, driven by additional EBITDA from the closure of underperforming locations, modifying daypart hours of operation, and the internal cost restructuring completed in 2026 demonstrating a clear, quantifiable return on the decisive actions taken. These actions are strengthening our foundation and positioning our business to regain momentum, deliver sustainable growth and long-term value as we enter the next chapter with Wendy's under the new, energized leadership of CEO Bob Wright," stated Meritage CEO Robert E. Schermer, Jr.
Six-Month Highlights:
- Sales were $273.6 million compared to $318.1 million for the same period last year, which included approximately 40 more restaurants.
- Restaurant Operating Income was $15.6 million compared to $24.8 million for the same period last year.
- Net (Loss) was ($23.1) million compared to ($4.0) million for the same period last year and included $18.7 million in one-time restructuring and closing costs.
- Adjusted EBITDA (a non-GAAP measure) adjusted for these one-time costs was $3.2 million compared to $11.0 million for the same period last year.
2026 Outlook: Improving Sales & Margins Ahead
- Full-Year Sales: $520 to $530 million
- Restaurant Operating Income: $30 to $40 million
The Company's five-year growth plan includes returning to our core focus of acquisition and development of additional restaurants utilizing the Company's unique operating platform. As we plan for the next generation of growth and new capital partners, we remain actively engaged in refinancing the Company and seek to enhance long-term shareholder value.
About the Company
Meritage Hospitality Group currently operates 320 restaurants located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 10,000 employees. As of June 28, 2026, the Company had fully diluted weighted average common shares outstanding of 6,720,000.
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
