Meritage Reports Second Quarter 2024 Results; Further Earnings Growth Ahead

GRAND RAPIDS, Mich., July 12, 2024 (GLOBE NEWSWIRE) — Meritage Hospitality Group Inc. (OTCQX: MHGU), a leading national franchise operator, today reported financial results for the second quarter ended June 30, 2024.

Key events of the second quarter of 2024

Sales totaled $172.4 million, compared to $176.6 million in the same period last year.
Operating profit was $7.1 million, compared to $8.9 million in the same period last year.
Net income was $3.4 million, compared with $5.9 million during the same period last year.
Consolidated non-GAAP EBITDA was $12.9 million compared to $15.6 million in the same period last year.

“Sales improved in the second half of the quarter as our Wendy’s Value and new product offerings helped offset the promotional retail environment. Our underlying costs continued to improve through the first six months of the year as food and labor costs moderate. The company’s sales comparisons remain positive year-to-date, underscoring the strength and resilience of the Wendy’s brand. We remain focused on driving profit growth through store-level efficiencies and new business development, while leveraging our best-in-class operating platform. We are very pleased with the new Wendy’s leadership’s view of the future of menu innovation, marketing, digital and technology investments to support restaurant margin performance and system alignment,” said Robert E. Schermer, Jr., CEO.

The most important events in the first six months of 2024

Sales for the six months rose to $335.2 million, compared to sales of $334.3 million during the same period last year.
Operating revenue increased 11.5% to $11.0 million compared to $9.8 million in the same period last year.
Net profit increased by 11.8% to $5.0 million compared to $4.5 million in the same period last year.
Consolidated non-GAAP EBITDA increased 8.4% to $22.8 million compared to $21.0 million in the same period last year.

The company has committed significant long-term capital resources to support Wendy’s brand initiatives, including continued expansion through the Groundbreaker Incentive Program. Newly constructed restaurants continue to deliver strong sales and profits as guests continue to reward us for improved dining facilities and an enhanced overall customer experience.

Meritage continues to distinguish itself as a national leader and innovator in the quick service industry, striving to deliver superior results through a results-driven culture, commitment to operational excellence, strategic acquisitions and real estate development.

About company

Meritage Hospitality Group is a leading national restaurant operator, currently with 388 restaurants 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. As of June 30, 2024, the Company had fully diluted weighted average common shares outstanding of 8,539,892.

The Company’s current publicly available information pursuant to amended SEC Rule 15c2-11 and FINRA Rule 6432 can be found at www.otcmarkets.comunder the share symbol MHGU/Disclosures or on the Company’s website, www.meritagehospitality.com.

SAFE HARBOR STATEMENT
Certain information contained in this press release, including information regarding future economic and financial results and the plans, expectations and objectives of management, constitutes forward-looking statements. The factors identified in our Safe Harbor statement, in addition to other possible factors not specifically mentioned, could affect the Company’s actual results and cause such results to differ materially from those expressed in the forward-looking statements. Please see 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