Meritage Reports First Quarter 2021 Results; Robust Sales And Earnings Growth
GRAND RAPIDS, Mich., April 15, 2021 (GLOBE NEWSWIRE) — Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, today reported financial results for the first quarter ended April 4, 2021.
First Quarter Highlights
- Sales increased 13.6% to a record $133.8 million compared to $117.8 million for the same period last year.
- Earnings from Operations increased significantly to $6.3 million compared to a Loss from Operations of $0.2 million for the same period last year.
- Net Earnings increased significantly to $4.9 million from a Net Loss of $3.7 million for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) increased 176.2% to $12.4 million compared to $4.5 million for the same period last year.
- Common Stock Dividends issued in the first quarter increased 14.3% to $0.08 per share.
“I am very pleased to report robust year-over-year sales and earnings growth for the first quarter of 2021. Many thanks go out to our restaurant operations teams for successfully navigating pandemic challenges across our U.S. markets. We entered the first quarter with solid sales momentum which was further enhanced by stimulus-related consumer spending versus government-mandated lockdowns last year. As we head into summer, our operating teams continue to remain focused on hiring new employees and maintaining a high level of customer safety,” stated Meritage CEO, Robert E. Schermer, Jr.
We are ramping up our multi-year growth efforts and have allocated significant capital resources to our Wendy’s brand, with plans to build up to 20 new locations and modernize 30 existing locations in 2021. The Company’s financial targets reflect the gradual re-opening of dine-in operations to 100% occupancy as the year progresses, in addition to the continued development of new restaurants and wholly owned brands as pandemic restrictions ease,” added Schermer, Jr.
2021 Full-Year Outlook: Strong Growth Ahead
- Sales growth of +10% to 15%
- Earnings from Operations growth of +20% to 30%
- Net Earnings growth of +20% to 30%
- EBITDA growth of +15% to 20%
- Dividend growth +100% to 125%
The Company remains focused on delivering the Wendy’s brand promise of quality, convenience and affordability, while leveraging best-in-class operating platforms and restaurant development expertise.
About the Company
Meritage Hospitality Group Inc. is the nation’s premier franchise operator, currently with 341 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 2020, the Company had total weighted average fully diluted common shares outstanding of 9,407,417 and Fully Diluted EPS of $1.58.
The Company’s current and publicly available information pursuant to 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.
Robert E. Schermer, Jr.
Meritage Hospitality Group Inc.
(616) 776-2600 ext. 1012
