Meritage Hospitality Group Inc (MHGU)

[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.