Meritage Reports Second Quarter 2020 Results; Strong Earnings Growth
GRAND RAPIDS, Mich., July 13, 2020 (GLOBE NEWSWIRE) — Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, today reported financial results for the second quarter ended June 28, 2020.
Second Quarter HighlightsSales increased 2.6% to $121.7 million compared to $118.7 million for the same period last year.Earnings from Operations increased 68.2% to a record $10.7 million compared to $6.4 million for the same period last year.Net Earnings increased 61.8% to a record $6.1 million compared to $3.8 million for the same period last year.Consolidated EBITDA (a non-GAAP measure) increased 26.9% to a record $16.0 million compared to $12.6 million for the same period last year. “We are very proud of our restaurant management teams who did a superb job of executing at the Wendy’s drive-thru level, while dining rooms remained closed during most of the quarter due to the pandemic. Such robust earnings growth would not have been possible without our employee’s relentless efforts to stay healthy and guests being comfortable with system-wide protective measures. Earnings growth was positively impacted by the new Wendy’s breakfast segment that launched in early March and has continued to outperform internal targets. We successfully opened six Wendy’s restaurants and one new Morning Belle restaurant during the first half of the year. Looking ahead, our operations plan is to remain focused on employee and customer safety, while prudently re-opening dining rooms.Six-Month HighlightsSales for the six months increased 4.86% to $239.5 million compared to sales of $228.4 million for the same period last year.Earnings from Operations were $10.5 million compared to $11.8 million for the same period last year.Net Earnings were $2.4 million compared to $7.8 million for the same period last year. Consolidated EBITDA (a non-GAAP measure) was $20.4 million compared to $25.0 million. The Company has committed significant long term capital resources to the Wendy’s brand initiatives, including an agreement to build 40 new Wendy’s restaurants by the end of 2024 under the Groundbreaking Incentive Program. Sales in newly built and re-imaged restaurants continue to deliver strong results as guests reward us for upgraded facilities and improved overall customer experience.Company 2021 Full-Year Outlook: Robust Growth AheadContinued growth in 2021 is expected to be driven by new restaurant development, breakfast, reimaging and acquisitions. The Company’s goal is to continue rewarding shareholders with dividend growth commensurate with earnings growth, as we navigate our way to a new industry normal.About the CompanyMeritage Hospitality Group is the nation’s premier franchise operator, with 340 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 10,400 employees. The Company has approximately 9.4 million diluted weighted average common shares outstanding. The Company’s public filings can be viewed at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.SAFE HARBOR STATEMENT
Certain information in this news 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.CONTACT:
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
616-776-2600 ext. 1012
