Meritage Hospitality Group Inc (MHGU)

[greasemonkeyshoes]

I have been a investor of WEN for few years,more in option than stock,since Emil was back. I believe moving to "a cut above the QSR" and "a bit below the Fast Casual" seem to be working for WEN,finally. As a sidekick,I added MHGU,at cheap OTC prices,believing there would be a 90-100% correlation consistent to WEN system-wide Same Store Sale(SSS) or 3% from 2015 to 2020,and the best part: margin expansion is growing faster due to image activation and millennials-focus(to me they are a pain in the bu###) and more.
If you care,I use 7 million shares for MC calculation,other than OTC and share count increase,this company can go far as it continue to pickup WEN's opportunistically and cheapy,morph into its franchise next day.What a way to go! Based on system-wide sale,WEN "4 for 4" seems to be working,and I believe the 4Q 2015 EBITDA for MHGU should matched its 3Q 2015 numbers.