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.
