Meritage Hospitality Group Inc. reports recurring developments in its franchise restaurant operating platform, including quarterly and annual sales, restaurant operating income, net earnings and Consolidated EBITDA. The company’s updates center on its Wendy’s restaurant portfolio, its proprietary Morning Belle breakfast, brunch and lunch concept, and restaurant development, reimaging and closure activity.
Company news also covers operating-margin trends, food, paper and labor cost pressures, menu and beverage innovation, delivery and restaurant technology initiatives, real estate development, strategic acquisitions and capital allocation. Governance updates and shareholder-liquidity discussions appear as part of Meritage’s public-company communications.
Meritage Hospitality Group (MHGU) has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Western District of Michigan to restructure its debt and strengthen its balance sheet.
The company operates 314 Wendy’s restaurants, one Bojangles and five independently branded concepts across 15 states, with approximately 9,000 employees. Meritage expects to maintain restaurant-level operations during the process and seeks Court approval through “first day” motions to continue paying wages and benefits, honoring certain customer programs, and paying suppliers for post‑petition goods and services in the ordinary course.
Meritage is pursuing debtor-in-possession financing, which, together with operating cash flow, is expected to provide sufficient liquidity during the Chapter 11 process. The company plans to use the court-supervised restructuring to address financial pressures tied to broader Wendy’s system headwinds, engage stakeholders, explore strategic alternatives, and maximize value.
Meritage Hospitality Group (MHGU) announced that board member Michael Ruggeri resigned from the company’s Board of Directors, effective August 31, 2026. CEO Robert E. Schermer Jr. thanked Ruggeri for his contributions since joining the board in 2025 and extended best wishes for his future endeavors.
Meritage Hospitality Group (OTCQX: MHGU) reported second quarter 2026 sales of $150.0 million, down from $163.5 million a year earlier when it operated about 40 additional restaurants. Restaurant Operating Income was $10.3 million versus $15.2 million. Net loss was $13.6 million versus net earnings of $0.3 million, including $13.8 million in one-time restructuring and closing costs. Adjusted EBITDA, excluding these costs, was $2.8 million compared with $8.2 million.
For the first six months of 2026, sales were $273.6 million versus $318.1 million, Restaurant Operating Income was $15.6 million versus $24.8 million, and net loss was $23.1 million versus $4.0 million, including $18.7 million in one-time costs. Adjusted EBITDA was $3.2 million versus $11.0 million. Meritage issued a 2026 outlook for full-year sales of $520–$530 million and Restaurant Operating Income of $30–$40 million, and highlighted ongoing restructuring, restaurant closures, and a five-year growth plan focused on acquisition and development, alongside active refinancing efforts.
Meritage Hospitality Group (OTCQX: MHGU) reported Q1 2026 results: sales $132.6M versus $154.5M year-ago, net loss $9.6M, and consolidated EBITDA $(4.5)M. Results included one-time charges of $4.5M for permanent closures and restructuring. Management reiterated 2026 guidance: $520–530M sales, $35–40M restaurant operating income, and adjusted EBITDA +45–55%. The company is closing select locations (about 60 to date), reduced morning hours in some restaurants, expects ~$10.0M annualized restaurant EBITDA improvement, and is pursuing refinancing and strategic capital partnerships while negotiating adjusted contract terms with lenders and franchisor.
Meritage Hospitality Group (OTCQX: MHGU) reported preliminary 2025 results and gave an initial 2026 outlook. Full-year 2025 sales were $617.7M versus $668.8M in 2024; net loss was $(26.3)M and consolidated EBITDA loss was $(6.8)M. Restaurants in operation declined to 365 from 379. Q4 2025 sales were $145.0M with a Q4 EBITDA loss of $(12.3)M. Management cited record-high prime costs (food, paper, labor) and one-time charges tied to closure of 21 underperforming restaurants.
Initial 2026 outlook calls for sales of $610M–$620M, earnings from operations of $6.0M–$7.0M, EBITDA of $18M–$20M, and ~355 restaurants, with planned cost-savings and product innovation driving margin recovery.
Adeia (NASDAQ:MHGU) announced on November 11, 2025 that it received the “Most Innovative Technology” Best of Show award at FMS: the Future of Memory and Storage for its hybrid bonding technology.
The award recognizes Adeia’s die-to-wafer and wafer-to-wafer hybrid bonding that supports submicron interconnect pitch and enables 3D integration of NAND, DRAM and logic to boost interconnect density, speed, power efficiency and reliability for AI, HPC, datacenter, mobile and automotive applications.
Meritage Hospitality Group (OTCQX: MHGU), a major franchise operator, reported challenging Q2 2025 results with sales declining to $163.5 million from $172.4 million year-over-year. Net earnings decreased significantly to $0.335 million from $3.0 million, while EBITDA fell to $7.5 million from $12.5 million.
The company's proprietary concept, Morning Belle, showed strong performance with a 16.9% same-store sales increase, driven by menu innovations and higher guest frequency. However, six-month results showed broader challenges, with the company reporting a net loss of $(4.0) million compared to $4.6 million profit last year.
Management acknowledged industry-wide challenges but expressed optimism about new Wendy's leadership and strategic initiatives focused on customer engagement and operational simplification.
Meritage Hospitality Group (OTCQX: MHGU) reported Q1 2025 financial results with sales of $154.5 million, down from $162.8 million year-over-year. The company faced operational challenges due to severe weather, resulting in a net loss of $4.3 million compared to $1.6 million profit last year. EBITDA decreased to $2.2 million from $9.9 million.
Despite Q1 challenges, Meritage reaffirmed its 2025 outlook, projecting:
- Sales growth up to 3%
- Earnings from Operations growth of 40-50%
- Net Earnings growth up to 50%
- EBITDA growth up to 15%
- Diluted EPS growth of 20-30%
The company opened three new Wendy's locations in Q1, planning 7-10 more openings this year. Their Morning Belle concept showed strong performance with +21.9% same-store sales growth, with 3-5 new locations planned. Meritage is also implementing Wendy's Fresh AI for automated drive-thru ordering.
Meritage Hospitality Group Inc. (OTCQX: MHGU) announced the sudden passing of Board member Duane Kluting. Kluting, who joined the company in 2005, served as a member of the Audit Committee and brought significant financial expertise from his previous roles at BDO, Herman Miller, and X-Rite.
CEO Robert Schermer acknowledged Kluting's valuable contributions to the company's growth and leadership, highlighting his dedication and trustworthy service during his tenure on the board. Kluting's financial background and commitment to the company's development made him an integral part of Meritage's governance structure.
Meritage Hospitality Group (OTCQX: MHGU) reported mixed financial results for Q4 and full-year 2024. Q4 highlights include: sales up 0.5% to $168.7M, net income surged 227% to $5.2M, and EBITDA increased 40.8% to $13.7M.
Full-year 2024 performance showed: sales slightly down to $668.8M from $672.5M, net earnings up 33.1% to $8.0M, EBITDA growth of 9.0% to $42.4M, and diluted EPS increase of 33.9% to $0.75.
For 2025, despite weather challenges in early months, Meritage forecasts substantial growth:
- Sales growth: +3% to +5%
- Net Earnings growth: +40% to +50%
- EBITDA growth: +15% to +25%
- Diluted EPS growth: +30% to +40%
The company is implementing Wendy's Fresh AI for automated drive-thru ordering and plans to expand with 3-5 new Morning Belle locations in 2025.