GRAND RAPIDS, Mich., Oct. 17, 2017 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today reported financial results for the third quarter and the nine months ended October 1, 2017.
2017 Third Quarter Highlights:
- Sales increased 40.3% to a record $86.6 million compared to $61.7 million for the same period last year.
- Earnings from Operations increased 38.9% to $4.0 million compared to $2.9 million for the same period last year.
- Net Earnings increased 34.9% to $2.7 million compared to $2.0 million last year.
- Consolidated EBITDA (a non-GAAP measure) increased 60.2% to $8.0 million compared to $5.0 million for the same period last year.
“The Company’s restaurant sales grew over 40% in the third quarter, a marked acceleration. The quarter also presented some unusual sales and earnings challenges, as the Company had over 50 Wendy’s restaurants and many employees affected, to varying degrees, by hurricane Irma. Company restaurant operators and support teams were well prepared for the storm and managed the disruptions with a high degree of proficiency. Newly built and reimaged Wendy’s restaurants continued to provide a meaningful catalyst to sales growth, along with the integration of acquired restaurants contributing to overall sales growth. Looking ahead, sales remain strong and earnings growth for the year is likely to exceed the high end of the Company’s original 2017 full-year outlook,” stated Meritage CEO, Robert E. Schermer, Jr.
The Company has committed significant capital resources to the Wendy’s brand reimage initiative, and remains on schedule to complete over 25 renovations and/or newly built restaurant locations in 2017. Customers are continuing to reward us for the upgraded facilities and improved overall guest satisfaction.
2017 Nine Months Highlights:
- Sales for the nine months ended October 1, increased 30.4% to $227.3 million compared to sales of $174.4 million for the same period last year.
- Earnings from Operations increased 50.5% to $12.8 million compared to $8.5 million for the same period last year.
- Net Earnings increased 64.3% to $7.5 million compared to $4.6 million for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) increased 64.1% to $21.9 million compared to $13.4 million last year.
- Common stock cash dividends paid during the first nine months of the year represent a 40% increase over the same period last year.
Meritage continues to distinguish itself as a leader and platform innovator in the quick service restaurant segment, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.
Original 2017 Full-Year Outlook: Continued Strong Growth Ahead
- Sales growth of +30% to 40%
- Earnings from Operations growth of +45% to 55%
- Net Earnings growth of +45% to 55%
- EBITDA growth of +35% to 45%
- Common stock dividend growth of +30% to 40%
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 255 restaurants in operation located in Arkansas, Florida, Georgia, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 7,700 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.
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., CEO
Meritage Hospitality Group Inc.
Source:Meritage Hospitality Group, Inc.