GRAND RAPIDS, Michigan, April 14, 2023 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation's premier franchise operator, today reported financial results for the first quarter ended April 2, 2023.
First Quarter Highlights
- Sales increased 8.7% to $157.7 million compared to $145.1 million for the same period last year.
- Earnings from Operations were $0.9 million compared to $2.5 million for the same period last year.
- Net Earnings (Loss) were $(1.5) million compared to $2.0 million for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) was $5.4 million compared to $8.4 million for the same period last year.
- The Company entered into a definitive agreement to acquire 25 Wendy's restaurants, scheduled to close in the second quarter, subject to standard due diligence.
"Our sales increased $12.6 million in the first quarter and continue to experience strong momentum into the second quarter. We believe margins are starting to improve as inflation stabilizes.", stated Meritage CEO, Robert E. Schermer, Jr.
"The Company is under a definitive agreement to acquire 25 Wendy's restaurants. Acquisitions, renovations, and new restaurant development are integral parts of our restaurant business model, as we grow into new, expandable market areas. Newly built Wendy's restaurants continue to provide the Company with a strong return on investment, as guests reward us for contemporary restaurant designs and digital enhancements," added Schermer.
2023 Outlook: Strong Growth Ahead:
- Sales +10% to +20%
- Earnings from Operations. +90% to +100%
- Net Income +35% to +45%
- EBITDA +25% to + 35%
The Company's has opened three Taco John's restaurants to date and is planning to open an additional 10-12 locations this year. The Company holds exclusive development rights in seven states as part of a 55 store development agreement with additional rights to develop more than 200 Taco John's restaurants. The Company continues to leverage its strategic operating platform, unique in-house restaurant development expertise and investments in digital technology to build the best-of-class QSR brands focused on quality, convenience, and affordability.
The Company's 5-year, 500 restaurant growth plan includes expanding its Wendy's operations to the franchise system limit of 400 restaurants, the development of Taco John's and Morning Belle, a breakfast-brunch brand owned by the Company.
About the Company
Meritage Hospitality Group is the nation's premier restaurant operators, currently with approximately 356 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 11,000 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.
CONTACT:
Robert E. Schermer, Jr.
Meritage Hospitality Group Inc.
(616) 776-2600 ext. 1012
