Meritage Hospitality Group Inc (MHGU)

[Mr Fox]

JULI 13, 2020 - 5:40 AM PDT
Meritage Reports Second Quarter 2020 Results; Strong Earnings Growth
GRAND RAPIDS, Mich., July 13, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, today reported financial results for the second quarter ended June 28, 2020.

Second Quarter Highlights

Sales increased 2.6% to $121.7 million compared to $118.7 million for the same period last year.
Earnings from Operations increased 68.2% to a record $10.7 million compared to $6.4 million for the same period last year.
Net Earnings increased 61.8% to a record $6.1 million compared to $3.8 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) increased 26.9% to a record $16.0 million compared to $12.6 million for the same period last year.
“We are very proud of our restaurant management teams who did a superb job of executing at the Wendy’s drive-thru level, while dining rooms remained closed during most of the quarter due to the pandemic. Such robust earnings growth would not have been possible without our employee’s relentless efforts to stay healthy and guests being comfortable with system-wide protective measures. Earnings growth was positively impacted by the new Wendy’s breakfast segment that launched in early March and has continued to outperform internal targets. We successfully opened six Wendy’s restaurants and one new Morning Belle restaurant during the first half of the year. Looking ahead, our operations plan is to remain focused on employee and customer safety, while prudently re-opening dining rooms.

“The Wendy’s brand has once again demonstrated high resilience during stressful economic times as speed, convenience and affordability become even more important to consumers,” stated Robert E. Schermer, Jr., the Company’s CEO.

Six-Month Highlights

Sales for the six months increased 4.86% to $239.5 million compared to sales of $228.4 million for the same period last year.
Earnings from Operations were $10.5 million compared to $11.8 million for the same period last year.
Net Earnings were $2.4 million compared to $7.8 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) was $20.4 million compared to $25.0 million.
The Company has committed significant long term capital resources to the Wendy’s brand initiatives, including an agreement to build 40 new Wendy’s restaurants by the end of 2024 under the Groundbreaking Incentive Program. Sales in newly built and re-imaged restaurants continue to deliver strong results as guests reward us for upgraded facilities and improved overall customer experience.

Company 2021 Full-Year Outlook: Robust Growth Ahead

Continued growth in 2021 is expected to be driven by new restaurant development, breakfast, reimaging and acquisitions. The Company’s goal is to continue rewarding shareholders with dividend growth commensurate with earnings growth, as we navigate our way to a new industry normal.

[Mr Fox]

Meritage Reports First Quarter 2020 Results
Press Release | 05/12/2020
GRAND RAPIDS, Mich., May 12, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today reported financial results for the first quarter ended March 29, 2020.

First Quarter Highlights

Sales increased 7.3% to $117.8 million compared to $109.8 million for the same period last year.
Loss from Operations was $0.2 million compared to Income from Operations of $5.4 million for the same period last year.
Net Loss was $3.7 million compared to Net Income of $4.1 million for the same period last year. (The change in earnings includes a negative year over year non-cash GAAP change of $1.0 million resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market.)
Consolidated EBITDA (a non-GAAP measure) was $4.5 million compared to $12.5 million for the same period last year. (Last year included a $3.6 million real estate gain)
The Company owned 335 restaurants compared to 318 for the same period last year.
“The first quarter for the Company’s restaurant business was a tale of two extremes. Early in the quarter, we hired 1,400 additional team members across our Wendy’s restaurant system, preparing for the national breakfast roll-out. We experienced record same store sales growth from breakfast, which continues to perform well in the social distancing environment. The pandemic arrived mid-March, with Government ordered closure of restaurant dining rooms and state shelter-in-place mandates. We closed 335 dining rooms, including 8 restaurants entirely, on a temporary basis,” stated Robert E. Schermer, Jr.

In response, the Company enacted many proactive measures to combat the negative near-term financial impact caused by the COVID-19 mandates, including but not limited to; suspended all non-essential cap-ex and new restaurant development, suspended dividends, requested landlord rent relief and interest only loan payments for 90 days. On April 6, 2020, the Company was approved for loans through its various subsidiary entities under the CARES Act Payroll Protection Program. As a result of shifting rules, unclear guidance and stabilized restaurant sales, the Company chose not to accept loans or participate in the Program but elected to participate in other tax benefits provided for under the CARES Act.

The Company’s path to full operations will consist of a phased approach taking numerous elements into consideration such as consumer and employee safety, business readiness, state and local guidance, and the new “normalized” safety protocols among QSR, family dining and other retail peers within the communities that it serves.

Looking Forward: Recovery & Rehiring

Our Wendy’s weekly sales continue to improve, as many states and communities we serve move toward re-opening. The Company is planning to hire restaurant employees once the closure mandates are lifted and normal dining room occupancy is restored. We believe the quick service restaurant segment and the Company have distinct advantages in a future recovery.

As in past times of economic stress, speed, convenience and affordability have been favorable differentiators in quick service restaurant operations.
Wendy’s restaurants are built for off premise sales, with restaurant drive-thru windows at each location.
The Wendy’s system is expanding digital and delivery options for additional off-premise sales.
Lower gas prices increase consumer disposable income and decrease supply delivery costs.
Meritage continues to distinguish itself as a leader and innovator in the quick service restaurant segment, striving for best in class results through a culture committed to safety, operational excellence and continued growth.

[Mr Fox]

Q1 2020 sales growth was driven by record same store sales associated with the introduction of the Wendy’s breakfast, which continues to perform well.

APRIL 16, 2020 - 5:56 AM PDT
Meritage Announces New Annual Meeting Date; Update on COVID-19 Impact and Looking Ahead
GRAND RAPIDS, Mich., April 16, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced the Annual Meeting of Shareholders originally scheduled for May 19th will be postponed due to COVID-19 safety and health concerns. The Annual Meeting of Shareholders will now be held at 8:30 am EST on June 25, 2020. Accordingly, the record date for determining shareholders to vote has been postponed to April 30, 2020. Other information about the Annual Meeting will be included in proxy materials which we expect to mail to shareholders on or about May 21, 2020.

Actions Taken in Response to COVID-19

The Company has taken significant proactive measures to ensure it remains strong, resilient and well-positioned to support employees, guests and other stakeholders through the COVID-19 crisis. The following is a list of select actions:

Reinforced our strict food safety procedures, personal hygiene standards, handwashing requirements and sanitation protocols across all restaurants;
Suspended all non-essential capital expenditures;
Suspended new restaurant development, with the exception of six new restaurants already near completion;
Benefitted from extended payment terms for royalties and marketing funds offered by Wendy’s over the next 90 days;
Negotiated near-term landlord rent relief;
Requested interest-only loan payment terms from syndicate lenders for a period of 90 days;
Suspended all stock dividends for 90 days or until business normalizes, whichever is earlier.
Approved by the SBA for a $29.1 M loan through the Coronavirus Aid, Relief and Economic Security (CARES) Act under the Paycheck Protection Program (PPP).
“Our geographical footprint and drive-thru operations have allowed us to continue serving the changing needs of guests as people adapt to local government orders. We are grateful to our employees, delivery drivers and supply-chain operators for continuing to deliver essential restaurant food items,” stated CEO, Robert E. Schermer.

Company Business Performance

329 of our Wendy’s restaurants remain open for drive-thru and delivery service across 16 states of operations.
Beginning mid-March, COVID-19 related dining room closures negatively impacted our Wendy’s sales by approximately 20% to 25%.
Company sales for Q1 2020 are estimated be 7% over the same period last year.
Q1 2020 sales growth was driven by record same store sales associated with the introduction of the Wendy’s breakfast, which continues to perform well.
The Wendy’s restaurant supply chain is keeping pace with drive-thru and delivery sales demand.
Many of our Wendy’s markets are now hiring additional employees.
We are assessing and participating in relief programs offered by the stimulus CARES Act, many of which apply directly to the restaurant industry.
Looking Ahead: Resilient Business Model

While the restaurant industry is at the epicenter of government mandated closures, we believe the quick service segment and the Company have distinct advantages in the future economic recovery.

Speed, convenience and affordability have been differentiators in quick service restaurant operations in past times of economic stress.
Wendy’s restaurants are built for off premise sales, with approximately 70% of our normal sales generated through the restaurant drive-thru, which remain open and operating.
The Wendy’s system offers digital and delivery options for additional off-premise sales.
Lower gas prices decrease supply delivery costs and increase consumer disposable income.
Low interest rates provide efficient capital for future growth opportunities.
Meritage continues to distinguish itself as a leader and innovator 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.

About Meritage

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 337 restaurants 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 a workforce of approximately 11,000 employees. The Company has approximately 9.0 million total weighted average fully diluted common shares outstanding. The Company’s current public information is available pursuant to SEC Rule 15c2-11 and FINRA Rule 6432 at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.

[Mr Fox]

MERITAGE WITHDRAWS OUTLOOK AND POSTPONES ANNUAL MEETING
Press Release | 03/31/2020
GRAND RAPIDS, Mich., March 31, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced the suspension of financial target guidance as well as the postponement of its annual meeting until evidence that the COVID-19 pandemic has subsided and states have lifted the quarantines and shelter-in-place mandates.

In view of the rapidly changing developments regarding COVID-19, and with the health of our shareholders and employees in mind, we are postponing the annual meeting. The Company’s original meeting date was scheduled for May 19, 2020. Once the Board of Director’s approves a new annual meeting date, the Company will announce the new date.

“We are navigating uncharted waters with COVID-19. The Company has taken numerous new measures to protect public health and safeguard our Wendy’s® employees in our restaurants. We continue to operate our Wendy’s restaurants with drive-thru only service and have indefinitely closed our six casual dining restaurants until the individual state mandates are lifted,” stated CEO Robert E. Schermer, Jr.

The introduction of the Wendy’s breakfast featuring the new Breakfast Baconator®, Honey Butter Chicken Biscuit and Frosty®-ccino delivered exceptional consumer response and record sales for the Company prior to the pandemic and system wide temporary closure of restaurant dining rooms.

“We are deeply grateful to all of our business partners affected by this pandemic, including our employees, shareholders, franchisor, lenders, landlords, food distributors and service providers, all working together through this national crisis,” added Schermer.

Meritage continues to distinguish itself as a leader and innovator 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.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 337 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 a workforce of approximately 11,000 employees. The Company has approximately 9.0 million total weighted average fully-diluted common shares outstanding. The Company’s current and publicly available filings can be viewed at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.

[Mr Fox]

Of course there is a decline in sales in the first and second quarter due to this temporary crises, but i think management can handle this and i'm in here for the long term.
I think this has an effect on the paid dividend too.
The drive-thru is now more important than ever, and i hope that the stores stay open.
When this pandemic is over i think most people are going to spend more money than ever so quarter 3 and 4 should be good.

[mov1es]

Any idea on the effect on sales for their locations? For reference in my state I have 3 stores and we are forced to do drive-thru only. No COVID in the area but state mandated rule and our average sales over the last two weeks are down about 35%. Obviously we have some labor savings etc. Just wondering if any casual observation info out there on their store traffic in their markets.

[Mr Fox]

Meritage Reports Full-Year 2019 Preliminary Results; 2020 Outlook: Robust Growth Ahead

Mon February 24, 2020 4:30 PM|GlobeNewswire|About: MHGU
GRAND RAPIDS, Mich., Feb. 24, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (MHGU), one of the nation’s premier franchise restaurant operator and developer, today reported preliminary financial results for the fiscal year ended December 29, 2019.

2019 Full-Year Highlights:

Sales increased 7.4% to $467.5 million compared to $435.3 million last year.

Earnings from Operations were $21.2 million compared to $25.4 million last year. (The current year included $2.1 million in additional depreciation, a non-cash expense)

Net Earnings were $12.9 million compared to $13.2 million last year. (The change in Net Earnings reflects a negative year over year non-cash GAAP charge of $2.5 million resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market).

Consolidated EBITDA (a non-GAAP measure) increased 12.2% to $44.6 million compared to $39.7 million last year.

The Company developed or acquired a net of 20 restaurants during the year, to finish with 337 restaurants in operation across 16 states.

Common stock dividends increased 60% to $0.24 per share compared to $0.15 prior year.

“Our operations and development performance in 2019 represented significant milestones in our 5-Year growth plan, finishing the year strong with 337 restaurants in operation. Despite minor development delays and non-cash impacts to reported net earnings for fiscal 2019, we were pleased with the net results and solid 12.2% EBITDA growth for the year as we developed and renovated a record number of new locations. We continued to transform our restaurant portfolio through the development of new locations and renovation of existing locations, offering both guests and employees more conveniences. Looking ahead to 2020, we are forecasting robust sales growth of approximately $100 million, a transformative year, with the rollout of breakfast in 316 of our Wendy’s locations, new restaurant development, renovations and the continued development of the Morning Belle breakfast/brunch restaurant concept. Operational excellence continues to be our inspiration, leveraging the Company’s best-in-class operating platform and restaurant development expertise, while delivering on the Wendy’s brand promise of quality, convenience, and value,” stated Meritage CEO Robert Schermer, Jr.

Fourth Quarter 2019 Highlights:

Sales increased 12.5% to $121.2 million compared to sales of $107.8 million for the same period last year.

Earnings from Operations were $3.6 million compared to $6.0 million for the same period last year.

Net Income was $2.4 million compared to $2.4 million for the same period last year.

Consolidated EBITDA (a non-GAAP measure) was $9.4 million compared to $10.1 million last year.

Meritage plans to continue its focus on Wendy’s capital investment and brand initiatives in 2020 with up to 18 new-build locations and 24 modernizations across sixteen states of operations.

Company 2020 Full-Year Financial Outlook: Robust Growth Ahead

Sales growth of +20%-25%
Earnings from Operations growth of +20%-25%
Net Earnings growth of +15%-20%
EBITDA growth of +15% to 20%
Dividend growth +17%- 33%

Meritage continues to distinguish itself as a leader and innovator in the QSR and Family Restaurant segments, striving for best in class results through a performance-based and employee-centric culture committed to operational excellence, strategic acquisitions and real estate development.

About Meritage
Meritage Hospitality Group is one of the nation’s premier restaurant operators, currently with 337 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. At Fiscal year end the 2019 the Company had, total weighted avg. fully diluted common shares outstanding of 9,033,570 and Fully Diluted EPS of $1.27.

The Company’s current and publically available information as required under 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., CEO
Meritage Hospitality Group Inc.
[phone]

[Mr Fox]

Meritage Announces 17% Increase First Quarter Common Stock Dividend and New Breakfast Rollout

Press Release | 02/11/2020
[b
GRAND RAPIDS, Mich., Feb. 11, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced that the Company’s Board of Directors approved a special quarterly dividend of $0.07 per share at the February 11, 2020 Directors meeting. The dividend is payable on March 9, 2020 to shareholders of record on February 26, 2020.

To view an image of the NEW BREAKFAST ADDITION please visit:
https://www.globenewswire.com/NewsRoom/AttachmentNg/58d11ac5-a3c3-4a55-8f05-8c79cb396c60

“We are in the process of training across our Wendy’s® locations for the highly anticipated national roll-out of Wendy’s breakfast featuring the new Breakfast Baconator®, Honey Butter Chicken Biscuit and Frosty®-ccino. The Company is on track to hire additional new team members to help deliver breakfast sales and support market share across our 16 states of operations. Looking ahead, new-build restaurant locations, modernizations, the system-wide breakfast roll-out and additional Morning Belle locations are all contributing to our targeted $100 million sales increase for 2020,” stated Meritage CEO, Robert Schermer, Jr.

2020 Full-Year Outlook: Robust Sales Growth Ahead

Sales growth of + 20% - 25%
Earnings from Ops growth of + 20% - 25%
Net Earnings growth of +15% - 20%
EBITDA growth of +15% - 20%
Dividend growth of +17% - 33%

Meritage continues to distinguish itself as a leader and innovator 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.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 337 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 a workforce of approximately 11,000 employees. The Company has approximately 9.0 million total weighted average fully-diluted common shares outstanding. The Company’s current and publicly available 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.
[phone]

[Mr Fox]

Meritage Announces 17% Increase First Quarter Common Stock Dividend and New Breakfast Rollout

Press Release | 02/11/2020
[b
GRAND RAPIDS, Mich., Feb. 11, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced that the Company’s Board of Directors approved a special quarterly dividend of $0.07 per share at the February 11, 2020 Directors meeting. The dividend is payable on March 9, 2020 to shareholders of record on February 26, 2020.

To view an image of the NEW BREAKFAST ADDITION please visit:
https://www.globenewswire.com/NewsRoom/AttachmentNg/58d11ac5-a3c3-4a55-8f05-8c79cb396c60

“We are in the process of training across our Wendy’s® locations for the highly anticipated national roll-out of Wendy’s breakfast featuring the new Breakfast Baconator®, Honey Butter Chicken Biscuit and Frosty®-ccino. The Company is on track to hire additional new team members to help deliver breakfast sales and support market share across our 16 states of operations. Looking ahead, new-build restaurant locations, modernizations, the system-wide breakfast roll-out and additional Morning Belle locations are all contributing to our targeted $100 million sales increase for 2020,” stated Meritage CEO, Robert Schermer, Jr.

2020 Full-Year Outlook: Robust Sales Growth Ahead

Sales growth of + 20% - 25%
Earnings from Ops growth of + 20% - 25%
Net Earnings growth of +15% - 20%
EBITDA growth of +15% - 20%
Dividend growth of +17% - 33%

Meritage continues to distinguish itself as a leader and innovator 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.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 337 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 a workforce of approximately 11,000 employees. The Company has approximately 9.0 million total weighted average fully-diluted common shares outstanding. The Company’s current and publicly available 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.
[phone]

[Mr Fox]

Excellent presentation and 6-year strategic plan.

https://s3.amazonaws.com/content.otcmarkets.com/media/1750452306/VhrGepVvohOLegX/doc.pdf

Tomorrow next earnings rapport.....

[Mr Fox]

Sixty Percent Full-Year Dividend Growth

Meritage Announces Fourth Quarter Common Stock Dividend; Sixty Percent Full-Year Dividend Growth
GRAND RAPIDS, Mich., Nov. 12, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced that the Company’s Board of Directors approved a special quarterly dividend of $0.06 per share at the November 12, 2019 meeting. The dividend is payable on December 10, 2019, to shareholders of record on November 27, 2019.

“The common stock dividends declared for the full-year represent an increase of 60% over the prior year, as we continue to reward shareholders commensurate with our earnings growth. An increase of 60% was at the high end of our target range for the year. The Company recently announced results for the nine months ended September 29, sales increased 5.75% to a record $346.4 million and Consolidated EBITDA (a non-GAAP measure) increased 18.7% to $35.2 million. During the year, the Company acquired 10 Wendy’s restaurants and is currently planning to open a new Wendy’s restaurant every two weeks through 2020, as our newly built and reimaged Wendy’s restaurants continue to provide a strong catalyst for continued sales and earnings growth,” stated Meritage CEO, Robert Schermer, Jr.

The Company’s 2025 business plan includes expanding the business to 435 restaurants, providing best in class results through a performance based culture committed to operational excellence, and committing to continued strategic acquisitions and real estate development.

Meritage Hospitality Group, Inc. is one of the nation’s premier restaurant operators, with 333 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 10,500 employees. The Company has approximately 9.7 million (fully diluted) 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.

[Mr Fox]

Meritage Reports Acquisition of Five Wendy’s Restaurants Located in Atlanta, GA
Press Release | 10/31/2019
GRAND RAPIDS, Mich., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier franchise restaurant operators, announced today that it has acquired five additional Wendy’s restaurants located in the Atlanta, Georgia market area.

“The acquisition of five Atlanta area restaurants complements our existing 39 Wendy’s restaurants in the Atlanta market area and is consistent with our previously announced 2025 growth plans to expand our operating base to 435 total restaurants. We intend to immediately integrate each of the acquired Wendy’s into our operating and accounting platform and fold them into our Wendy’s remodeling program that is designed to enhance the overall guest experience”, stated Chief Executive Officer, Robert Schermer, Jr. The Company expects the five additional restaurants to add approximately $8.8 million in annual sales and be accretive to earnings going forward.

The Company continues to be a leader in new restaurant development within the Wendy’s U.S. system. With a stated goal of 400 Wendy’s restaurants, the Company recently announced its commitment to build an additional 40 Wendy’s restaurants by 2024 under the new Development Agreement. The Company is on pace for a record number of new and renovated restaurants in 2019.

During the first three quarters of 2019, the Company declared common stock cash dividends of $0.18 per share representing an increase of 100% over the same period last year along with EBITDA growth of 18.7%.

Company Outlook 2019: Sales & Earnings Acceleration

Sales growth of +10% to 20%
Net Earnings growth of +10% to 20%
EBITDA growth of +15% to 25%
Common stock dividend growth +50% to 60%

Looking Ahead: 2020
We are forecasting accelerating sales and earnings growth in 2020, driven by 2019 newly developed, reimaged and acquired restaurant coming fully on-line, as well as the nationwide roll-out of breakfast across our Wendy’s markets in the first quarter of 2020.

The Company continues to distinguish itself as a leader and innovator in the restaurant industry, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.

About Meritage

Meritage Hospitality Group is one of the nation’s premier franchise operators, with 332 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 growing workforce of approximately 10,500 employees. 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.

[Mr Fox]

M&A Awards: Schermer leads Meritage through aggressive expansion, growth
BY SYDNEY SMITH
Sunday, October 13, 2019 10:56am

Meritage Hospitality Group Inc. CEO Robert Schermer, Jr. has led the company as it has amassed a portfolio of about 400 Wendy’s restaurant locations and grown its revenue to nearly half a billion dollars.

Today, Meritage has a market capitalization of $106 million and a total enterprise value of about $300 million.

The company is coming off a record 2018, when Meritage opened a new Wendy’s nearly every two-and-a-half weeks, said Schermer, the winner in the executive category in the 2019 MiBiz Dealmakers of the Year Awards.

For 2018, Meritage’s sales grew 39.3 percent to $453 million and earnings before interest, tax, depreciation and amortization (EBITDA) grew 50.3 percent to $39.7 million. The company developed or acquired 62 restaurants during 2018 and integrated 71 restaurants it acquired in the prior year.

As well, Meritage raised about $5.6 million in preferred stock sales to fund acquisitions, alongside $78.9 million in new long-term debt.

For 2019, the company has forecasted net earnings growth of 10-20 percent, with EBITDA growth in the 15-percent to 25-percent range. Meritage also expects “strong sales and earnings growth in 2020, driven by newly developed, reimagined and acquired Wendy’s restaurants coming online during the year.”

Under Schermer’s leadership, the company also continued its dealmaking strategy this year. That includes signing a “groundbreaking” agreement with the Wendy’s organization under which Meritage will receive significant economic incentives, including royalty and marketing fee relief, for its commitment to invest $100 million to develop 40 new restaurant locations by the end of 2024.

In August, the company also signed two definitive asset purchase agreements to acquire 10 Wendy’s restaurants located in Georgia and Texas that would add around $17.9 million of sales. Meritage followed up that deal in September of this year with another deal to add five additional Wendy’s restaurants in the Odessa and Midland area of Texas.

Another unique deal had Meritage completing the sale of a 756-acre piece of real estate in the Bahamas to Disney in March 2019. The company said the deal will generate cash flow for new restaurant development, acquisitions, dividend distributions and stock buy-backs.

Overall, Schermer credits his team at Meritage for the company’s growth trajectory, as the deals require analyzing many factors when deciding on a new location, including evaluating the condition of the stores and economics of the area, as well as the opportunities in that particular market to expand.

This was the case earlier this year in the pair of Texas deals, he said.

“They were financially good stores, in reasonable shape and there is a lot of growth opportunities in and around that market,” Schermer said.

Schermer acknowledges that Meritage must soon wrestle with a new growth-related challenge: Franchisees in Wendy’s system cannot exceed 400 restaurants, and Meritage plans to reach that number within 18-24 months. The company plans to sell in existing markets and acquire stores in underdeveloped markets, he said.

Meritage also could explore new concepts, including its new breakfast restaurant dubbed Morning Belle, for which the company is eyeing 35 stores by the end of 2025.

“That will be kind of the next chapter in Wendy’s, and we’re looking for other opportunities that don’t compete with Wendy’s,” Schermer said.

[Mr Fox]

"Year to date the Company’s consolidated EBITDA has increased 18.7% over last year, and we expect sale and earnings growth rates to accelerate in 2020 and 2021."


OKTOBER 16, 2019 - 12:45 PM PDT
Meritage Reports Third Quarter 2019 Results; Accelerating Sales and Earnings Growth Ahead
GRAND RAPIDS, Mich., Oct. 16, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today reported financial results for the third quarter and the nine months ended September 29, 2019.

2019 Third Quarter Highlights:

Sales increased 6.3% to a record $117.9 million compared to $110.9 million for the same period last year.
Earnings from Operations were to $5.8 million compared to $6.3 million for the same period last year. (The current quarter included additional one-time pre-opening and acquisition costs of $806,000).
Net Earnings were $2.6 million compared to $3.7 million last year. (The change in Net Earnings reflects a negative year over year non-cash GAAP change of $582,000 resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market).
Consolidated EBITDA (a non-GAAP measure) was $10.1 million compared to $10.5 million for the same period last year.
“Our increased sales results through the third quarter reflect the underlying strength of the Wendy’s franchise and our ability to perform in a challenging labor environment. We continue to execute our strategic priorities, including new restaurant development and modernization. We believe that this focus will continue to generate long-term, industry-leading returns for our shareholders.

Year to date the Company’s consolidated EBITDA has increased 18.7% over last year, and we expect sale and earnings growth rates to accelerate in 2020 and 2021.

Our newly built, reimaged and acquired Wendy’s continue to provide a significant earnings catalyst, which we believe will be further enhanced by the Wendy’s nationwide roll-out of a new breakfast program during the first quarter next year,” stated Meritage CEO, Robert E. Schermer, Jr.

The Company has committed significant capital resources to the Wendy’s brand initiatives including commitment to build 40 new restaurants under the Groundbreaking Incentive Program, which include associated royalty and national marketing fee incentives.

2019 Nine Months Highlights:

Sales for the nine months ended September 29, 2019, increased 5.75% to $346.4 million compared to sales of $327.5 million for the same period last year.

Earnings from Operations were $17.6 million compared to $19.4 million for the same period last year. (The current quarter included $1.4 million of additional depreciation (non-cash expense) associated with new and renovated restaurants).

Net Earnings were $10.5 million compared to $10.7 million for the same period last year. (The change in Net Earnings reflects a negative year over year non-cash GAAP change of $4.0 million resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market).

Consolidated EBITDA (a non-GAAP measure) increased 18.7% to $35.2 million compared to $29.6 million last year.

Common stock cash dividends paid during the first nine months of the year represent a 100% increase over the same period last year.
Meritage continues to distinguish itself as a leader and innovator in the quick service restaurant and family dining segments, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.

Full -Year 2019 Outlook: Accelerating Growth Ahead

Sales growth of 10% to 20%
Earnings from Operations growth of 10% to 20%
Net Earnings growth of 15% to 25%
EBITDA growth of 15% to 25%
Common stock dividend growth of 50% to 60%

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 327 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 10,500 employees. The Company has approximately 6.3 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.

[Mr Fox]

Income statement annual since 2014:

https://www.quotemedia.com/portal/financials?qm_symbol=mhgu

[Mr Fox]

Meritage Reports Second Quarter 2019 Results; Earnings Growth Ahead

JULI 18, 2019 - 11:01 AM PDT

GRAND RAPIDS, Mich., July 18, 2019 (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 June 30, 2019.

Second Quarter Highlights

Sales increased 1.5% to $118.7 million from $116.9 million for the same period last year.
Earnings from Operations were $6.4 million versus $8.9 million for the same period last year.
Net Earnings were $3.8 million compared to $5.6 million for the same period last year. The change in Net Earnings reflects a negative year over year non-cash GAAP change of $3.0 million resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market.
Consolidated EBITDA (a non-GAAP measure) increased 3.6% to $12.6 million compared to $12.1 million for the same period last year.
“We are pleased with the successful integration of acquired, newly constructed and renovated Wendy’s restaurants. We continue to focus on executing our 5-year plan, accelerating same-restaurant sales and building new restaurants in order to achieve our long term growth targets,” stated Robert Schermer, Jr., the Company’s CEO.

Six-Month Highlights

Sales for the six months increased 5.5% to $228.4 million compared to sales of $216.6 million for the same period last year.
Earnings from Operations were $11.8 million compared to $13.1 million last year.
Net Earnings increased 11.0% to $7.8 million compared to $7.1 million for the same period last year. Net Earnings reflects a negative year over year non-cash GAAP change of $3.4 million resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market.
Consolidated EBITDA (a non-GAAP measure) increased 31.0% to $25.0 million compared to $19.1 million last year.
The Company has committed significant long term capital resources to the Wendy’s brand initiatives, and recently announced an agreement to build 40 new Wendy’s restaurants by the end of 2024 under the Groundbreaking Incentive Program. Same store sales in newly built and re-imaged restaurants continue to deliver strong results as guests are rewarding us for the upgraded facilities and improved overall consumer experience.

Meritage continues to distinguish itself as a leader and innovator in the quick service and casual restaurant segments, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.

Company 2019 Full-Year Financial Targets: Solid Growth Ahead

Sales growth of +10% to 20%
Net Earnings growth of +10% to 20%
EBITDA growth of +15 to 25%
Common stock dividend growth of +50% to 60%

[Mr Fox]

Company has increased common stock dividends 200% to $0.12 per share compared to $0.04 last year during the same period.

GRAND RAPIDS, Mich., May 22, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced results following the annual shareholders meeting.

During the annual shareholder meeting, the Company’s shareholders elected eight directors: James P. Bishop, Duane F. Kluting, Joseph L. Maggini Sr., Dirk J. Pruis, Gary A. Rose, Robert E. Schermer, Sr., Robert E. Schermer, Jr. and Peter D. Wierenga. Each director will serve one year until the 2020 Annual Shareholders Meeting.

The CEO’s Strategic Review (available on the company’s website and OTCQX) highlighted observations in the restaurant industry, the Company’s strong past performance and an update on the five-year business plan to expand its restaurant operations to 420 restaurants by 2021. The management team intends to focus on accomplishing the 2021 financial and operational goals through a combination of continued investment in people development, acquisitions, new restaurant development and renovations.

The Company’s Board of Directors approved a special quarterly dividend of $0.06 per share at the May 21, 2019 Directors meeting immediately following the shareholders meeting. The dividend is payable on June 13, 2019 to shareholders of record on June 3, 2019.

“We reported strong earnings growth in the first quarter and believe the earnings growth trend will continue through 2019 and into 2020, driven by new development and reimaged locations. The Company’s goal is to reward shareholders commensurate with earnings growth,” stated Meritage CEO, Robert Schermer, Jr.

During the first six months of 2019 the Company has increased common stock dividends 200% to $0.12 per shares compared $0.04 last year during the same period.

The Company 2019 Full-Year Outlook: Solid Earnings Growth Ahead

Sales growth of +10% to 20%
Income from Operations growth of +10% to 20%
Net Earnings growth of +15% to 25%
EBITDA growth of +15% to 25%
Common stock dividend growth +50% to 60%

Meritage continues to distinguish itself as a leader and innovator 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.

[Mr Fox]

Net Income increased 176.3% to $3.9 million compared to $1.4 million for the same period last year.

Meritage Reports First Quarter 2019 Results; Strong Earnings Growth
GRAND RAPIDS, Mich., April 16, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today reported financial results for the first quarter ended March 31, 2019.

First Quarter Financial Highlights

Sales increased 10.1% to $109.8 million compared to $99.7 million for the same period last year.
Earnings from Operations increased 28.8% to $5.4 million compared to $4.2 million for the same period last year.
Net Income increased 176.3% to $3.9 million compared to $1.4 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) increased 74.6% to $12.2 million compared to $7.0 million for the same period last year.

“We delivered a solid earnings performance in the first quarter through our restaurant operations and real estate development business model, despite challenging winter weather conditions and record school closings across many of our markets. Company restaurant operating teams stayed focused on the things they could control in adverse weather conditions, such as food inventory and labor costs. The Wendy’s marketing plan was beneficial to us in the first quarter driving profitable transactions, allowing us to head into the second quarter with a strong underlying business.

We plan to accelerate our capital investment spending in 2019 with 36 restaurants under development, including a record 20 new Wendy’s restaurant buildings scheduled for opening this year. Our new and newly renovated Wendy’s restaurants continue to perform well in the market place, positioning the Company for continued sales and earnings growth ahead,” stated Robert E. Schermer, Jr. the Company’s CEO.

Full-Year Outlook: Strong Sales & Earnings Growth Ahead

Sales growth of +10% to 20%
Earnings from Operations growth of +10% to 20%
Net Earnings growth of +10% to 20%
EBITDA growth of +10% to 20%

Meritage continues to distinguish itself as a leader and innovator in the quick service and casual restaurant segment, striving for best in class results through a performance-based culture committed to operational excellence, strategic acquisitions and real estate development.

[Mr Fox]

Net Income increased 45.6% to $13.2 million compared to $9.0 million last year.

Meritage Reports Record Full-Year 2018 Preliminary Results; 2019 Outlook: Solid Growth Ahead
GlobeNewswire•February 5, 2019
GRAND RAPIDS, Mich., Feb. 05, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (MHGU), one of the nation’s premier franchise restaurant operators, today reported preliminary financial results for the fiscal year ended December 30, 2018.

2018 Full-Year Highlights:

Sales increased 39.3% to $435.3 million compared to $312.6 million last year.
Earnings from Operations increased 75.9% to $25.4 million compared to $14.4 million last year.
Net Income increased 45.6% to $13.2 million compared to $9.0 million last year.
Consolidated EBITDA (a non-GAAP measure) increased 50.3% to $39.7 million compared to $26.4 million last year.
The Company developed or acquired a net of 62 restaurants during the year, to finish with 317 restaurants in operation across 16 states.
“Our performance in 2018 was strong, resulting in a record year of profitable growth for the Company on all financial metrics highlighted above. We continued to invest and transform our restaurant business through modernization and new locations, offering guests more conveniences. Importantly, our restaurant operations exceeded expectations for the year, a tribute to our 317 general managers and restaurant operating teams. Results included the incremental impact of 10 new restaurant locations, 14 renovations and the integration of 56 restaurants acquired during the year. Looking ahead to 2019, we are forecasting another year of solid sales and earnings growth, driven by people development, guest count growth and restaurant modernization programs. Operational excellence continues to be our primary focus, utilizing the Company’s unique operating platform and restaurant development expertise, while delivering on the Wendy’s brand promise of quality, convenience, and value.,” stated Meritage CEO Robert Schermer, Jr.

Fourth Quarter 2018 Highlights:

Sales increased 26.4% to $107.8 million compared to sales of $85.2 million for the same period last year.

Earnings from Operations increased 261.4% to $6.0 million compared to $1.7 million for the same period last year.

Net Income increased 56.3% to $2.4 million compared to $1.6 million for the same period last year.

Consolidated EBITDA (a non-GAAP measure) increased 121.3% to $10.1 million compared to $4.6 million last year.
Meritage plans to continue its extensive capital investment and development program in 2019 with up to 16 new and 23 renovated locations made to the Company’s existing restaurant portfolio across sixteen states.

Company 2019 Full-Year Financial Outlook: Strong Growth Ahead

Sales growth of +10 to 20%
Earnings from Operations growth of +10% to 20%
Net Earnings growth of +10% to 20%
EBITDA growth of +10% to 20%
Meritage continues to distinguish itself as a leader and innovator in the franchise restaurant segment, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, currently with 318 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.

[Mr Fox]

Meritage Reports Pending Sale of Undeveloped Land to Disney; Receives Approval of Bahamas Cabnet Office

Press Release | 10/22/2018

GRAND RAPIDS, Mich., Oct. 22, 2018 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators and developers, today announced that on Friday October 19, 2018 the National Economic Council of the Bahamas approved a proposal submitted by Disney Cruise Line Island Development Ltd. to acquire and develop property owned in partnership between the Company and The Related Group.

The Company through an investment partnership managed by The Related Group owns 765 acres of fee property, known as Lighthouse Point, on the island of Eleuthera, Bahamas. The partnership has entered into a confidential agreement to sell a majority of its 765-acre peninsula to Disney, subject to Government approvals as customary in the Bahamas. Disney has previously reported that it is prepared to invest up to $400 million in the property for the development of a cruise ship port facility, in conjunction with plans to double the capacity of Disney Cruise Lines in the next five years.

“Few organizations in the world possess the financial resources, development expertise, global track record of preserving the natural environmental and the ability to showcase cultural heritage like Disney,” stated Robert Schermer CEO. “We are proud of the association and confident that Disney will be a world-class steward of Lighthouse Point, creating a transformational economic opportunity for many deserving people of South Eleuthera”, added Schermer.

Proceeds from the pending transaction will be used for general corporate purposes including; new restaurant development, acquisitions, dividend distributions and stock buy-backs.

The Company reported record sales and EBITDA in the first nine months of the year and believes solid growth will continue through 2018 and 2019, driven by new restaurant development, reimaged locations and acquisitions.

The Company 2018 Full-Year Outlook: Solid Growth Ahead

Sales growth of +40% to 50%
Income from Operations growth of +55% to 65%
Net Earnings growth of +40% to 50%
EBITDA growth of +40% to 50%
Common stock dividend growth +50% to 100%
Meritage continues to distinguish itself as a leader and innovator 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.

[Mr Fox]

Meritage Hospitality Group declares $0.06 dividend

Nov. 13, 2018 2:13 PM ET|About: Meritage Hosp... (MHGU)

Meritage Hospitality Group (OTCQX:MHGU) declares $0.06/share special dividend.

Payable Dec. 10; for shareholders of record Nov. 27; ex-div Nov. 26.

[Mr Fox]

Earnings from Operations increased 58.8% to $6.3 million compared to $3.9 million for the same period last year.



OKTOBER 12, 2018 - 6:14 AM PDT
Meritage Reports Third Quarter 2018 Results; Continued Sales and Earnings Growth
GRAND RAPIDS, Mich., Oct. 12, 2018 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today reported financial results for the third quarter and the nine months ended September 30, 2018.

2018 Third Quarter Highlights:

Sales increased 28.1% to a record $110.9 million compared to $86.6 million for the same period last year.

Earnings from Operations increased 58.8% to $6.3 million compared to $3.9 million for the same period last year.

Net Earnings increased 39.5% to $3.7 million compared to $2.6 million last year.

Consolidated EBITDA (a non-GAAP measure) increased 32.2% to $10.5 million compared to $8.0 million for the same period last year.

“The Company’s record sales in the third quarter were driven primarily by the successful integration of newly acquired and renovated restaurants. The quarter also presented some seasonal challenges, as the extensive flooding from Hurricane Florence closed several of our Wendy’s restaurants for over a week. We believe our newly built, reimaged and acquired Wendy’s will continue to provide significant long-term earnings catalyst, as we execute our 420-restaurant growth plan. During the fourth quarter, we are planning to open a new Wendy’s restaurant every ten days for the remainder of the year,” stated Meritage CEO, Robert E. Schermer, Jr.

The Company has committed significant capital resources to the Wendy’s brand initiatives including new locations and remains on schedule to complete 26 projects for the year. Customers are continuing to reward us for the new and upgraded facilities with improved sales and greater overall guest satisfaction.

2018 Nine Months Highlights:

Sales for the nine months ended September 30, 2018, increased 44.1% to 327.5 million compared to sales of $227.3 million for the same period last year.

Earnings from Operations increased 51.7% to $19.4 million compared to $12.8 million for the same period last year.

Net Earnings increased 43.3% to $10.7 million compared to $7.5 million for the same period last year

Consolidated EBITDA (a non-GAAP measure) increased 35.5% to $29.6 million compared to $21.9 million last year.

Common stock cash dividends paid during the first nine months of the year represent a 28.6% increase over the same period last year.

Meritage continues to distinguish itself as a leader and platform innovator 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.

2018 Full -Year Outlook: Continued Solid Growth Ahead

Sales growth of 40% to 50%
Earnings from Operations growth of 55% to 65%
Net Earnings growth of 40% to 50%
EBITDA growth of 40% to 50%
Common stock dividend growth of 50% to 100%

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 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., CEO
Meritage Hospitality Group Inc.
[phone]

[Mr Fox]

Dividend had been quadruppled in 2 years.

[Mr Fox]

Net Earnings increased 88.9% to $5.6 million compared to $3.0 million for the same period last year.

Meritage Reports Second Quarter 2018 Results; Strong Earnings GrowthPress Release | 07/17/2018
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

[Mr Fox]

Sales increased 60.8% to $99.7 million from $62.0 million for the same period last year.

APRIL 18, 2018 - 5:00 AM PDT
Meritage Reports First Quarter 2018 Results; Record Growth
GRAND RAPIDS, Mich., April 18, 2018 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today reported financial results for the first quarter ended April 1, 2018.

2018 First Quarter Highlights

Sales increased 60.8% to $99.7 million from $62.0 million for the same period last year.
Earnings from Operations increased 22.9% to $4.2 million compared to $3.4 million for the same period last year. The first quarter 2018 included a one-time charge increase of $745,000 related to pre-opening and acquisition costs.
Net Income was $1.4 million compared to $1.9 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) increased 32.8% to $7.0 million compared to $5.3 million for the same period last year.
Common stock dividends issued during the first quarter increased 100% over the same period last year.

“The first quarter of 2018 was quite eventful, completing four acquisitions, along with the subsequent integration of 56 Wendy’s located across four states and the opening of seven newly built or renovated restaurants. Our operating teams performed exceptionally well integrating all of these new locations into our operating platform, which resulted in first quarter record sales of nearly $100 million. We plan to accelerate our investment spending in 2018 with a goal of 32 additional reimaged and newly built Wendy’s restaurants. Our new and newly renovated Wendy’s restaurants continue to out-perform, positioning the Company for transformational sales and earnings growth ahead,” stated Robert E. Schermer, Jr., the Company’s CEO.

Full-Year Outlook: Strong Sales & Earnings Growth Ahead

Sales growth of +40% to 50%
Earnings from Operations growth of +55% to 65%
Net Earnings growth of +40% to 50%
EBITDA growth of +40% to 50%
Common stock dividend growth +50% to 100%

Meritage continues to distinguish itself as a leader and innovator 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.

[Mr Fox]

“We are pleased to report the best full-year results in the Company’s history"

2017 Full-Year Highlights:

Sales increased 32.6% to $312.6 million compared to $235.8 million last year.
Earnings from Operations increased 27.1% to $14.4 million compared to $11.4 million last year.
Net Income increased 40.1% to $9.0 million compared to $6.4 million last year.
Consolidated EBITDA (a non-GAAP measure) increased 42.7% to $26.4 million compared to $18.5 million last year.
Common stock cash dividends increased 42.9% over the previous year.
The Company developed or acquired net 74 additional restaurants during the year to finish with 255 restaurants in operation.
“We are pleased to report the best full-year results in the Company’s history on all key financial line items highlighted above. The results included strong core restaurant operations, the incremental impact of 71 restaurants acquired and modernization of 21 Wendy’s, including 8 new restaurant buildings. Customers continue to reward us for the Wendy’s modernization program throughout our U.S. designated market areas. Looking ahead, we are set-up for a significant growth year in 2018 with momentum in acquisitions, renovations and new construction. Growth within the Wendy’s system provides us the opportunity to leverage our operating systems and restaurant development expertise, capitalizing on Wendy’s distinct brand advantages of quality, convenience, and value,” stated Meritage CEO, Robert Schermer, Jr.

Fourth Quarter 2017 Highlights:

Sales increased 38.8% to $85.2 million compared to sales of $61.4 million for the same period last year.
Earnings from Operations were $1.7 million compared to $2.9 million for the same period last year.
Net Income was $1.6 million compared to $1.9 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) was $4.6 million compared to $5.2 million last year.
Meritage plans to continue its capital investment program in 2018 with the modernization of up to 40 Wendy’s restaurants during the year, including the development of approximately 20 new buildings.

In the first quarter of 2018, the Company acquired 43 Wendy’s restaurants located in Connecticut, Massachusetts and Texas. The Company also reported a pending agreement to acquire 12 Wendy’s restaurants located in the Midwest. The acquisition is subject to standard due diligence and is scheduled to close during the first quarter.

Company 2018 Full-Year Financial Outlook: Significant Sales & Earnings Growth Ahead

Sales growth of +35% to 45%
Earnings from Operations growth of +55% to 65%
Net Earnings growth of +35% to 45%
EBITDA growth of +35% to 45%
Common stock dividend growth +50% to 100%

Meritage continues to distinguish itself as a leader and innovator 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.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 296 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, 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 9,000 employees. The Company has approximately 6.1 million (basic) common shares outstanding. The Company’s public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.

[Mr Fox]

Take a look at the numbers year over year.

https://www.otcmarkets.com/stock/MHGU/financials

And i'm sure management will deliver more.

They are great!!!

[Mr Fox]

Meritage Hospitality Group declares $0.04 dividend

Feb. 14, 2018 2:52 PM ET|About: Meritage Hospitality Group, Inc. (MHGU)
Meritage Hospitality Group (OTCQX:MHGU) declares $0.04/share quarterly dividend, 33.3% increase from prior dividend of $0.03.

Forward yield 0.8%

Payable March 12; for shareholders of record Feb. 27; ex-div Feb. 26.

[Mr Fox]

Meritage Reports Acquisition of 38 Wendy’s Restaurants Located in Connecticut and Massachusetts
Jan 31, 2018
OTC Disclosure & News Service

-

GRAND RAPIDS, Mich., Jan. 31, 2018 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced it has acquired 38 Wendy’s restaurants located in Connecticut and Massachusetts designated market areas. The Company funded the acquisition through a private placement of preferred stock, cash on hand and debt financing provided by a syndicate of banks led by City National Bank. The Company expects the 38 restaurants acquired to add approximately $75.0 million in annual sales and be accretive to earnings going forward.

“We are inspired by the opportunity to welcome new employees and guests into our newly acquired 38 Wendy’s restaurants in Connecticut and Massachusetts. We intend to immediately integrate each of restaurants into our customized predictive operating and financial suite, followed by an extensive remodeling program designed to modernize the Wendy’s restaurants and enhance the overall guest experience. The acquisition is consistent with the Company’s 5-year growth plan to expand our operating base up to 400 Wendy’s and 20 casual dining restaurants,” stated Chief Executive Officer, Robert Schermer, Jr.

Company 2018 Outlook: Strong Sales & Earnings Growth Ahead

The Company previously announced it has a pending agreement to acquire an additional 12 Wendy’s restaurants in the Mid-West. The transaction is subject to customary due diligence, standard approvals and scheduled to be completed during the quarter.

Meritage continues to distinguish itself as a leader and innovator 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.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 297 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, 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 9,000 employees. The Company has approximately 6.2 million (basic) common shares outstanding. The Company’s public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.

SAFE HARBOR STATEMENT

[Mr Fox]

Company 2018 Outlook: Significant Sales & Earnings Growth Ahead

GRAND RAPIDS, Mich., Jan. 18, 2018 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced it has acquired 5 Wendy’s restaurants located in the Lubbock, Texas designated market area.

The Company also reported it has two pending definitive agreements to acquire an additional 50 Wendy’s restaurants located in the Eastern and Mid-Western United States. The pending transactions are subject to customary due diligence and standard approvals, with the remaining acquisitions targeted to be completed during the first quarter of 2018.

“The acquisition of the five Texas Wendy’s restaurants is consistent with our previously announced 5-year growth plans to expand our operating base up to 420 restaurants. We intend to immediately integrate each of the acquired restaurants into our customized predictive operating and financial suite, followed by an extensive remodeling program designed to modernize the Wendy’s restaurants and enhance the overall guest experience,” stated Chief Executive Officer, Robert Schermer, Jr. The Company expects the combined 55 restaurants to add approximately $100 million in annual sales and be accretive to earnings going forward.

[Mr Fox]

DECEMBER 6, 2017 - 6:00 AM PST
Meritage Reports Acquisition and Definitive Agreements to Acquire 57 Wendy's Restaurants Located Across Five States
GRAND RAPIDS, Mich., Dec. 06, 2017 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced it has acquired 2 Wendy’s restaurants in Virginia and entered into three independent definitive asset purchase agreements to acquire a total of 55 Wendy’s restaurants located in the Eastern and Mid-Western United States. The transactions are subject to customary due diligence and standard approvals with closings scheduled to be completed during the first quarter of 2018.

“The consummation of these transactions is consistent with our stated growth plans and investment strategy of ‘profitable growth’ within the Wendy’s franchise system. Upon closing we intend to immediately integrate each of these Wendy’s restaurants into our unique web-based operating & accounting platform, followed by an extensive remodeling program designed to modernize the Wendy’s restaurants and enhance the overall guest experience”, stated Chief Executive Officer, Robert Schermer, Jr.

The Company expects the 57 restaurants to add over $100 million in annual sales and be accretive to earnings going forward.

Company 2018 Outlook: Robust Sales & Earnings Growth Ahead

The Company’s 2018 financial guidance will be provided with the 2017 fourth quarter and year-end results.

Meritage continues to distinguish itself as a leader and innovator 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.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 253 restaurants in operation located in Arkansas, Florida, Georgia, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 7,700 employees. The Company has approximately 6.1 million (basic) common shares outstanding. The Company’s public filings can be viewed at www.otcqx.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.
[phone]

[Mr Fox]

Meritage Announces 50% Common Stock Cash Dividend Increase
GRAND RAPIDS, Mich., Nov. 07, 2017 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced that the Company’s Board of Directors approved a special quarterly dividend of $0.03 per share at the November 7, 2017 Directors meeting. The dividend is payable on December 1, 2017, to shareholders of record on November 20, 2017.

“In the third quarter we delivered strong sales and profit growth from our restaurant operations with sales increasing 40.3% and EBITDA increasing 60.2%. The $0.03 common stock dividend declared is a 50% increase over the fourth quarter last year and represents a 43% dividend increase for the full-year, consistent with our stated philosophy to reward shareholders commensurate with earnings growth. The Company recently increased its 2017 full-year earnings outlook and believes the momentum will continue to build in 2018. Newly developed and reimaged Wendy’s restaurants continued to provide a meaningful same restaurant sales catalyst, along with the integration of acquired restaurants contributing to overall growth,” stated Meritage CEO, Robert Schermer, Jr.

Looking ahead to 2018, the Company has a robust pipeline of new development sites, renovations and acquisition opportunities under consideration. The Five Year Plan includes expanding the business to 420 restaurants by 2021, best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.

Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 253 restaurants in operation located in Arkansas, Florida, Georgia, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 7,700 employees. The Company’s public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.

[Mr Fox]

Meritage Reports Third Quarter 2017 Results; Accelerating Sales and Earnings Growth

GlobeNewswire•October 17, 2017Comment
GRAND RAPIDS, Mich., Oct. 17, 2017 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (MHGU), one of the nation’s premier restaurant operators, today reported financial results for the third quarter and the nine months ended October 1, 2017.

2017 Third Quarter Highlights:

Sales increased 40.3% to a record $86.6 million compared to $61.7 million for the same period last year.
Earnings from Operations increased 38.9% to $4.0 million compared to $2.9 million for the same period last year.
Net Earnings increased 34.9% to $2.7 million compared to $2.0 million last year.
Consolidated EBITDA (a non-GAAP measure) increased 60.2% to $8.0 million compared to $5.0 million for the same period last year.
“The Company’s restaurant sales grew over 40% in the third quarter, a marked acceleration. The quarter also presented some unusual sales and earnings challenges, as the Company had over 50 Wendy’s restaurants and many employees affected, to varying degrees, by hurricane Irma. Company restaurant operators and support teams were well prepared for the storm and managed the disruptions with a high degree of proficiency. Newly built and reimaged Wendy’s restaurants continued to provide a meaningful catalyst to sales growth, along with the integration of acquired restaurants contributing to overall sales growth. Looking ahead, sales remain strong and earnings growth for the year is likely to exceed the high end of the Company’s original 2017 full-year outlook,” stated Meritage CEO, Robert E. Schermer, Jr.

The Company has committed significant capital resources to the Wendy’s brand reimage initiative, and remains on schedule to complete over 25 renovations and/or newly built restaurant locations in 2017. Customers are continuing to reward us for the upgraded facilities and improved overall guest satisfaction.

2017 Nine Months Highlights:

Sales for the nine months ended October 1, increased 30.4% to $227.3 million compared to sales of $174.4 million for the same period last year.
Earnings from Operations increased 50.5% to $12.8 million compared to $8.5 million for the same period last year.
Net Earnings increased 64.3% to $7.5 million compared to $4.6 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) increased 64.1% to $21.9 million compared to $13.4 million last year.
Common stock cash dividends paid during the first nine months of the year represent a 40% increase over the same period last year.
Meritage continues to distinguish itself as a leader and platform innovator 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.

Original 2017 Full-Year Outlook: Continued Strong Growth Ahead

Sales growth of +30% to 40%
Earnings from Operations growth of +45% to 55%
Net Earnings growth of +45% to 55%
EBITDA growth of +35% to 45%
Common stock dividend growth of +30% to 40%
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 255 restaurants in operation located in Arkansas, Florida, Georgia, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 7,700 employees. The Company’s public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, 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., CEO
Meritage Hospitality Group Inc.
[phone]

[Mr Fox]

“The Company experienced strong sales and earnings growth in the second quarter, partially
driven by the successful integration of 57 newly acquired Wendy’s restaurants into our operating
platform late in the period. The Company is forecasting earnings acceleration from 69 newly
acquired restaurants in the second half of the year, and believes that the Wendy’s brand presents a
compelling long-term growth opportunity for the Company, as indicated by the continued
improvement in our system brand metrics.” stated Meritage CEO, Robert E. Schermer, Jr.

[Mr Fox]

That would be a market cap of 140 mln. It sure is possible. Revenue and profit is accelerating and management is executing very wel. I Like the insider ownership too.

[stewbert123]

This stock will be $23 by end of year.

[Mr Fox]

Today you have the answer. Excellent 2nd qtr. Great management team. Executing their business plan very well. I Like this and add more shares. Holding strong for many years.

[stewbert123]

I can say from an extremely confident angle that this stock will continue to go up and up.

[wallstreet9999]

Mr. Fox Thank you for your work. We are out here reading and buying more. any news today?

[mov1es]

Hey Mr Fox
Don't want you to think you are alone. What a great no drama investment this has been over the last few years. Had I known 5 years ago I would have sold everything, invested in this, and been retired already. Slowly adding on the downticks. Is there any end in sight to the growth?

[Mr Fox]

Marketcap over 100 mln. Still a bargain.

[Mr Fox]

Key Executives


Mr. Robert E. Schermer Jr. Chief Exec. Officer and Director
Mr. Gary A. Rose Pres and Chief Operating Officer
Ms. Tracey Smith Chief Financial Officer and VP
Mr. Jeff VanHaitsma Director of Organizational Devel.
Ms. Lindsay Stone Director of Marketing


Thank you for doing such a great job!!!!
I'm a happy long shareholder

[Mr Fox]

2017 First Quarter Highlights

Sales increased 14.7% to a first quarter record $62.0 million from $54.1 million for the same period last year.

Earnings from Operations increased 106.3% to $3.4 million compared to $1.7 million for the same period last year.

Net Income increased 244.7% to $1.9 million compared to $541,000 for the same period last year.

Consolidated EBITDA (a non GAAP measure) increased 81.3% to $5.3 million compared to $2.9 million for the same period last year.

The Company acquired 8 Wendy’s restaurants in March and 4 in April, and has an additional 57 Wendy’s restaurants under definitive agreement to be acquired in four Mid-Atlantic States during the second quarter of 2017.

[Mr Fox]

Wow, great news out and an all time high:

http://finance.yahoo.com/news/meritage-reports-definitive-agreements-acquire-185000574.html

[Mr Fox]

Close to all time high.

[Mr Fox]

Next week q3 results out. I think this must be an excellent qtr. Management added 10 restaurants this qtr. From their filling:

The Company expects the 10 restaurants acquisition to add approximately $13.8 million in annual sales and be accretive to earnings. The transaction was funded with a combination of cash-on-hand and debt financing.

[Mr Fox]

MHGU 15th aquisition in 5 years. 173 restaurants and counting.

http://finance.yahoo.com/news/meritage-reports-acquisition-8-wendy-122533660.html

[Mr Fox]

The closing this qtr. of underperforming restaurants is an ongoing expense to improve their overall restaurant portfolio. It accounted for 998k on the balance sheet. Still they have a net income of 541k this qtr. Comparing to the same qtr last year (541+998-1077=462K). A growth of 42%!!!!
Never sell this stock.

[Mr Fox]

Meritage Reports First Quarter 2016 Results
Continued Sales and Earnings Growth
Meritage Hospitality Group, Inc.
5 hours ago
GlobeNewswire
????
GRAND RAPIDS, Mich., April 20, 2016 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (MHGU), one of the nation’s premier restaurant operators, today reported financial results for the first quarter ended April 3, 2016.

2016 First Quarter Highlights

Sales increased 16.3% to a record $54.1 million from $46.5 million for the same period last year.
Earnings from Operations were $1.6 million compared to $1.8 million for the same period last year. 2016 included additional one-time charges of $1.2 million associated with restaurant preopening, acquisition, closing and disposition expenses.
Net Income was $541,000 compared to $1.1 million for the same period last year.
Consolidated EBITDA (a non GAAP measure) was $2.9 million compared to $3.3 million for the same period last year.
The Company paid its 54th consecutive quarterly dividend on its Series B Cumulative Convertible Preferred shares of $.20 per share, on April 1, 2016.
“Our first quarter sales were strong and earnings from operations improved by approximately $1.1 million prior to the one-time charges described above under earnings from operations. Customers are continuing to reward us for improved menu offerings and renovated Wendy’s restaurants. In our casual dining segment we are scheduled to open a new flagship restaurant named the Wheelhouse in the second quarter,” stated Robert E. Schermer, Jr., the Company’s CEO.

The reimaged Wendy’s building design continues to produce record restaurant-level sales for Meritage in both newly constructed and renovated restaurants. The Company is planning to complete 18 reimaged restaurants in 2016 and believes the investment will continue to provide a multi-year catalyst for sales and earnings growth as the brand transformation journey accelerates.

Meritage continues to distinguish itself as a performance leader and innovator in the quick service and casual restaurant segments, achieving best in class results through strategic acquisitions, real estate design and development innovations, and the development of people committed to operational excellence. The Company continues to evaluate acquisition opportunities where it can leverage its unique, web-based operating platform.

About Meritage

Meritage is one of the nation’s premier restaurant operators, currently operating 164 quick service and casual dining restaurants in seven states. The Company is headquartered in Grand Rapids and employs a workforce of approximately 5,100. The Company’s public filings can be viewed at www.otcqx.com under the stock symbol MHGU, or at the Company’s website, www.meritagehospitality.com. The Company continues to seek tuck-in acquisitions and new restaurant roll-out opportunities where it can leverage its web-based operating platform and development skill-set within the Wendy’s franchise system and casual dining segment.

[Mr Fox]

Diluted EPS $0,93