GRAND RAPIDS, Mich., July 17, 2018 (GLOBE NEWSWIRE) — Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today reported financial results for the second quarter ended July 1, 2018.
SECOND QUARTER HIGHLIGHTS
- Sales increased 48.5% to $116.9 million from $78.7 million for the same period last year.
- Earnings from Operations increased 64.6% to $8.9 million from $5.4 million for the same period last year.
- Net Earnings increased 88.9% to $5.6 million compared to $3.0 million for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) increased 40.1% to $12.1 million compared to $8.6 million in 2017.
- The Company acquired an additional 56 Wendy’s restaurants located in four states during the first six months of fiscal 2018.
“We experienced strong sales and earnings growth in the second quarter through the successful integration of 56 newly-acquired Wendy’s restaurants. The Company is forecasting continued strong earnings growth for the balance of the year, with contributions from newly built, renovated and acquired restaurants. We continue to focus on people development and customer satisfaction in our efforts to deliver long-term profitable growth,” stated Robert Schermer, Jr., the Company’s CEO.
The Company has committed significant capital resources to the Wendy’s brand initiatives, and is planning to complete a significant number of renovations and/or newly built restaurant locations this year. Same store sales in newly built and re-imaged restaurants continue to deliver strong results as guests are rewarding restaurants for the upgraded facilities and improved overall consumer experience.
Six-Month Highlights
- Sales for the six months increased 53.9% to a record $216.6 million compared to sales of $140.7 million for the same period last year.
- Earnings from Operations increased 48.5% to $13.1 million compared to $8.8 million last year.
- Net Earnings increased 45.4% to $7.1 million compared to $4.9 million for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) increased 37.4% to $19.1 million compared to $13.9 million last year.
Meritage continues to distinguish itself as a leader and innovate in the quick service restaurant segment, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.
Company 2018 Full-Year Financial Targets: Strong Growth Ahead
- Sales growth of +40% to 50%
- Incomes from Operations growth of +55% to 65%
- New Earnings growth of +45% to 55%
- EBITDA growth of +40% to 50%
- Common stock dividend growth of +50% to 100%
About the Company
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 311 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 10,000 employees. The Company has approximately 6.2 million (basic) common shares outstanding. The Company’s public filings can be viewed at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.
SAFE HARBOR STATEMENT
Certain information in this news 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., CEO
Meritage Hospitality Group Inc.
616-776-2600 ext. 1012