Meritage Reports Full-Year 2019 Preliminary Results; 2020 Outlook

Robust Growth Ahead

GRAND RAPIDS, Mich., Feb. 24, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier franchise restaurant operator and developer, today reported preliminary financial results for the fiscal year ended December 29, 2019. 

2019 Full-Year Highlights:

• Sales increased 7.4% to $467.5 million compared to $435.3 million last year.
  
  
• Earnings from Operations were $21.2 million compared to $25.4 million last year. (The current year included $2.1 million in additional depreciation, a non-cash expense)
  
  
• Net Earnings were $12.9 million compared to $13.2 million last year. (The change in Net Earnings reflects a negative year over year non-cash GAAP charge of $2.5 million resulting from the Company’s interest rate swap agreements, which are measured at fair value based on mark-to-market).
  
  
• Consolidated EBITDA (a non-GAAP measure) increased 12.2% to $44.6 million compared to $39.7 million last year.
  
  
• The Company developed or acquired a net of 20 restaurants during the year, to finish with 337 restaurants in operation across 16 states.
  
  
• Common stock dividends increased 60% to $0.24 per share compared to $0.15 prior year.

“Our operations and development performance in 2019 represented significant milestones in our 5-Year growth plan, finishing the year strong with 337 restaurants in operation. Despite minor development delays and non-cash impacts to reported net earnings for fiscal 2019, we were pleased with the net results and solid 12.2% EBITDA growth for the year as we developed and renovated a record number of new locations. We continued to transform our restaurant portfolio through the development of new locations and renovation of existing locations, offering both guests and employees more conveniences. Looking ahead to 2020, we are forecasting robust sales growth of approximately $100 million, a transformative year, with the rollout of breakfast in 316 of our Wendy’s locations, new restaurant development, renovations and the continued development of the Morning Belle breakfast/brunch restaurant concept. Operational excellence continues to be our inspiration, leveraging the Company’s best-in-class operating platform and restaurant development expertise, while delivering on the Wendy’s brand promise of quality, convenience, and value,” stated Meritage CEO Robert Schermer, Jr.