Meritage Hospitality Group Inc (MHGU)

[Mr Fox]

Another excellent qtr. and year. EPS $ 1.23 a share!!!, and I like their very conservative outlook. Great team:

Meritage Reports Preliminary 2015 Results; 2016 Outlook: Continued Earnings Growth
Meritage Hospitality Group, Inc.
February 10, 2016 8:49 AM
GlobeNewswire
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GRAND RAPIDS, Mich., Feb. 10, 2016 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (MHGU), one of the nation’s premier restaurant operators, today reported preliminary financial results for 2015 fiscal year ended January 3, 2016.

2015 Full-Year Highlights:

Sales increased 31.1% to $210.0 million compared to $160.2 million last year.

Earnings from Operations increased 149.6% to $10.7 million compared to $4.3 million last year.

Net Income increased 154.7% to $7.0 million compared to $2.8 million last year.

Consolidated EBITDA (a non-GAAP measure) increased 94.8% to $17.1 million compared to $8.8 million last year.

Common stock cash dividends increased 100% over the previous year, commensurate with earnings growth.

The Company developed or acquired 26 additional restaurants, finishing the year with 166 restaurants in operation.


Chief Executive Officer Robert Schermer, Jr., stated, “Our results for the year achieved many of our operational goals, including a strong contribution from newly built and acquired restaurants, culminating with record earnings in the fourth quarter. During the year, we experienced a number of positive factors including lower food costs, high same store sales growth and several beneficial real estate transactions. Our proprietary casual dining brands continued to grow with earnings increasing 26% for the year.

2015 represented our fifth consecutive year of sales and restaurant growth, which exceeded our original five-year plan submitted to shareholders. We accomplished these results through financial discipline, our unique operating & accounting platform and a service culture in our restaurants,” added Mr. Schermer.

Fourth Quarter 2015 Highlights:

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Sales increased 34.9% to $59.2 million compared to sales of $43.9 million for the same period last year.

Earnings from Operations increased 1,265.3% to $3.0 million compared to $223,000 for the same period last year.

Net Income increased 310.1% to $2.3 million compared to $556,000 for the same period last year.

Consolidated EBITDA (a non-GAAP measure) increased 113.8% to $4.4 million compared to $2.1 million last year.


Company 2016 Outlook: Continued Earnings from Operations Growth

The Company’s 2016 operating targets include the following year-over-year financial expectations (excluding any future acquisitions). The Company is planning to accelerate capital investments in 2016 including the renovation of 18 existing Wendy’s locations utilizing the new image activation design standards.

Sales growth of 5% to 10%
Earnings from Operations growth of 10% to 15%
EBITDA growth of 5% to 10%


Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 166 restaurants in operation located in Florida, Georgia, Michigan, North Carolina, South Carolina, Ohio and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 5,100 employees. The Company has approximately 5,651,242 (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.

[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.

[Mr Fox]

I am adding too, management is shareholder friendly and smart:

http://www.otcmarkets.com/companyPresentationViewer?cmdId=1162

and i like their commitment to growth:

http://www.otcmarkets.com/companyPresentationViewer?cmdId=995

[greasemonkeyshoes]

I am adding MHGU and keeping WEN as volatility/concern due to reduced liquidity is making everyone squamish. QSR with predictable cash flow should be ok going forward and I hope the dividend will protect the downside if Mr. Market crashed.

[Mr Fox]

100 % dividend increase and a new 52 week high $ 10,75

[Mr Fox]

GRAND RAPIDS, Mich., Oct. 13, 2015 (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 ending September 27, 2015.

2015 Third Quarter Highlights:

Sales increased 31.1% to $53.3 million compared to $40.7 million for the same period last year.
Earnings from Operations increased 177.8% to $3.0 million compared to $1.1 million for the same period last year.
Net Income increased 89.2% to $1.5 million compared to $800,000 last year.
Consolidated EBITDA (a non-GAAP measure) increased 82.7% to $4.2 million compared to $2.3 million for the same period last year.
Chief Executive Officer Robert Schermer, Jr., stated, “During the third quarter and nine months we experienced significant earnings growth which is running ahead of our net earnings and EBITDA guidance for the year. Positive business issues contributing to the results include: lower food costs, restaurant acquisitions, new locations and strong sales associated with Wendy’s restaurant renovations.

The Company continues to focus on its people development and the integration of operating and accounting systems in newly acquired Wendy’s restaurants. We are making major capital expenditures in existing locations using new design standards for Wendy’s restaurants. Our new locations and newly renovated restaurants are providing guests with a contemporary restaurant experience, and they are rewarding us for the Wendy’s investment upgrades,” added Mr. Schermer. In addition, the Company’s chef-casual restaurants are performing well with new restaurants and renovations scheduled for 2016.

2015 Nine Months Highlights:

Sales for the nine months ended September 27, increased 29.6% to $150.8 million compared to sales of $116.4 million for the same period last year.
Earnings from Operations increased 88.4% to $7.6 million compared to $4.1 million for the same period last year.
Net Income increased 115.5% to $4.7 million compared to $2.2 million for the same period last year.
Consolidated EBITDA (a non-GAAP measure) increased 88.9% to $12.7 million compared to $6.7 million last year.
Company Updated Full-Year 2015 Outlook:

Based on nine months operating results through September, the Company is increasing its 2015 earnings outlook to include:

EBITDA growth of 85% to 90% from prior guidance of 55% to 65%
Net Income growth of 110% to 115% from prior guidance of 100%
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 167 restaurants in operation located in Florida, Georgia, Michigan, North Carolina, South Carolina, Ohio and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 5,100 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]

Low floater 5,5 mln shares outstanding. Profitable and growing. Low risk high reward company. I like their last report.




Meritage Reports Acquisition of 15 Wendy’s Restaurants in Toledo, Ohio

Jul 29, 2015
OTC Disclosure & News Service

-

GRAND RAPIDS, Mich., July 29, 2015 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, announced it has completed the acquisition of 15 Wendy’s restaurants located in Toledo, OH.

The Wendy’s restaurants were acquired from a Wendy’s franchisee and are semi-contiguous to the Company’s existing Wendy’s operations extending down the I-75 corridor from Michigan to Florida. Commenting on the acquisition Robert E. Schermer, Jr. CEO stated, “This transaction represents an important building-block in our stated growth strategy to create long-term shareholder value through new restaurant development and consolidation within the Wendy’s franchise system.”

The Company estimates the acquisition will add approximately $19.0 million in annual sales and be accretive to consolidated earnings and EBITDA going forward.

The Company plans to install POS upgrades and transition the back-of-house systems over to the Meritage operating and accounting system protocol. The Wendy’s restaurant system is going through a major brand re-imaging and new building design termed “image activation” with the goal of having 60% of the system renovated by the end of 2020. Image activation includes major interior and exterior restaurant upgrades aimed at creating “A Cut-Above” guest experience.

Meritage has completed 14 acquisitions within the Wendy’s franchise system and continues to build new restaurants and make significant investments into existing company restaurants. The Company owns and operates a total of 167 quick service and casual dining restaurants in the United States operating in Florida, Georgia, Michigan, North and South Carolina, Ohio and Virginia.

Headquartered in Grand Rapids, MI the Company employs a growing workforce of approximately 4,500 people. 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.

[greasemonkeyshoes]

A WEN fan for quite sometimes and started following this OTC franchisee recently.The 2Q 2015 earning income of $2.2 million dollars is AMAZING,considering its market cap is only around $50.0 million dollars.Took a position and would like to arbitrage between these two stocks,as I expect Meritage grew a bit faster than WEN in the next few quarters.
PS-The CEO thought the company should worth about $200 millions in MC.

[sedleell]

I agree. P/S is now below .20 as of the new preliminary quarterly financial statement. P/E at 7.3 ... its getting ridiculously undervalued. Will anyone ever discover this gem?

[~S.B.A.~]

$100mil in revs valuation $18.00

[mAjOr dAmAgE]

A real company, how about that. Market cap of $25MM according to their site.