Meritage Reports First Quarter 2025 Results; Reaffirms Full-Year 2025 Earnings Outlook
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 (OTCQX: MHGU) ha riportato i risultati finanziari del primo trimestre 2025 con vendite pari a 154,5 milioni di dollari, in calo rispetto ai 162,8 milioni dell'anno precedente. L'azienda ha affrontato difficoltà operative a causa di condizioni meteorologiche avverse, registrando una perdita netta di 4,3 milioni di dollari rispetto a un utile di 1,6 milioni dell'anno scorso. L'EBITDA è sceso a 2,2 milioni dai 9,9 milioni precedenti.
Nonostante le sfide del primo trimestre, Meritage ha confermato le previsioni per il 2025, prevedendo:
- Una crescita delle vendite fino al 3%
- Un aumento degli utili operativi tra il 40% e il 50%
- Una crescita degli utili netti fino al 50%
- Una crescita dell'EBITDA fino al 15%
- Un incremento dell'EPS diluito tra il 20% e il 30%
L'azienda ha inaugurato tre nuove sedi Wendy's nel primo trimestre, con l'intenzione di aprirne altre 7-10 entro l'anno. Il loro concept Morning Belle ha mostrato ottime performance con una crescita delle vendite a parità di negozio del +21,9%, e sono previste 3-5 nuove aperture. Meritage sta inoltre implementando Wendy's Fresh AI per l'automatizzazione degli ordini al drive-thru.
Meritage Hospitality Group (OTCQX: MHGU) informó los resultados financieros del primer trimestre de 2025 con ventas de 154,5 millones de dólares, una disminución respecto a los 162,8 millones del año anterior. La compañía enfrentó desafíos operativos debido a condiciones climáticas severas, resultando en una pérdida neta de 4,3 millones de dólares comparado con una ganancia de 1,6 millones el año pasado. El EBITDA disminuyó a 2,2 millones desde 9,9 millones.
A pesar de los retos del primer trimestre, Meritage reafirmó sus perspectivas para 2025, proyectando:
- Un crecimiento de ventas de hasta el 3%
- Un aumento en las ganancias operativas del 40-50%
- Un crecimiento en las ganancias netas de hasta el 50%
- Un crecimiento del EBITDA de hasta el 15%
- Un crecimiento del EPS diluido del 20-30%
La empresa abrió tres nuevas ubicaciones de Wendy's en el primer trimestre, con planes de abrir entre 7 y 10 más este año. Su concepto Morning Belle mostró un sólido desempeño con un crecimiento de ventas comparables del +21,9%, y se planean de 3 a 5 nuevas aperturas. Meritage también está implementando Wendy's Fresh AI para automatizar los pedidos en el drive-thru.
Meritage Hospitality Group (OTCQX: MHGU)는 2025년 1분기 재무 실적을 발표하며 매출 1억 5,450만 달러를 기록했으며, 이는 전년 동기 1억 6,280만 달러에서 감소한 수치입니다. 회사는 심각한 기상 악화로 인한 운영상의 어려움을 겪어 순손실 430만 달러를 기록했으며, 이는 작년 160만 달러 순이익과 대비됩니다. EBITDA는 990만 달러에서 220만 달러로 감소했습니다.
1분기 어려움에도 불구하고 Meritage는 2025년 전망을 재확인하며 다음과 같이 예상했습니다:
- 매출 성장 최대 3%
- 영업이익 성장 40-50%
- 순이익 성장 최대 50%
- EBITDA 성장 최대 15%
- 희석 주당순이익(EPS) 20-30% 성장
회사는 1분기에 Wendy's 신규 매장 3곳을 개장했으며, 올해 7~10곳의 추가 개장을 계획하고 있습니다. Morning Belle 콘셉트는 동일 매장 매출이 +21.9% 성장하는 강한 실적을 보였으며, 3~5곳의 신규 매장도 계획 중입니다. Meritage는 또한 Wendy's Fresh AI를 도입하여 드라이브스루 주문 자동화를 추진하고 있습니다.
Meritage Hospitality Group (OTCQX: MHGU) a publié ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires de 154,5 millions de dollars, en baisse par rapport à 162,8 millions l'année précédente. L'entreprise a rencontré des difficultés opérationnelles dues à des conditions météorologiques sévères, entraînant une perte nette de 4,3 millions de dollars contre un bénéfice de 1,6 million l'an dernier. L'EBITDA est passé de 9,9 millions à 2,2 millions.
Malgré les défis du premier trimestre, Meritage a confirmé ses prévisions pour 2025, anticipant :
- Une croissance des ventes jusqu'à 3%
- Une augmentation des résultats opérationnels de 40 à 50%
- Une croissance du résultat net jusqu'à 50%
- Une croissance de l'EBITDA jusqu'à 15%
- Une croissance du BPA dilué de 20 à 30%
L'entreprise a ouvert trois nouveaux établissements Wendy's au premier trimestre, prévoyant d'en ouvrir 7 à 10 supplémentaires cette année. Leur concept Morning Belle a affiché une solide performance avec une croissance des ventes à magasins comparables de +21,9%, avec 3 à 5 nouvelles ouvertures prévues. Meritage met également en place Wendy's Fresh AI pour automatiser les commandes au drive.
Meritage Hospitality Group (OTCQX: MHGU) meldete die Finanzergebnisse für das erste Quartal 2025 mit einem Umsatz von 154,5 Millionen US-Dollar, was einem Rückgang gegenüber 162,8 Millionen US-Dollar im Vorjahreszeitraum entspricht. Das Unternehmen hatte aufgrund extremer Wetterbedingungen operative Herausforderungen und verzeichnete einen Nettoverlust von 4,3 Millionen US-Dollar im Vergleich zu einem Gewinn von 1,6 Millionen im Vorjahr. Das EBITDA sank von 9,9 Millionen auf 2,2 Millionen US-Dollar.
Trotz der Herausforderungen im ersten Quartal bestätigte Meritage seine Prognose für 2025 und erwartet:
- Umsatzwachstum von bis zu 3%
- Betriebsergebniswachstum von 40-50%
- Nettoertragswachstum von bis zu 50%
- EBITDA-Wachstum von bis zu 15%
- Wachstum des verwässerten Gewinns je Aktie (EPS) von 20-30%
Das Unternehmen eröffnete im ersten Quartal drei neue Wendy's-Standorte und plant weitere 7-10 Eröffnungen in diesem Jahr. Ihr Morning Belle-Konzept zeigte eine starke Leistung mit einem Wachstum der vergleichbaren Umsätze von +21,9%, und es sind 3-5 weitere Neueröffnungen geplant. Meritage implementiert zudem Wendy's Fresh AI zur automatisierten Drive-Thru-Bestellung.
- Strong 2025 outlook with projected Net Earnings growth up to 50%
- Morning Belle concept showing impressive +21.9% same-store sales growth
- Expansion continues with 10-13 new Wendy's planned for 2025
- Implementation of AI technology for drive-thru automation
- 3-5 new Morning Belle locations planned following successful concept proof
- Q1 2025 sales declined to $154.5M from $162.8M year-over-year
- Q1 2025 net loss of $4.3M compared to $1.6M profit last year
- EBITDA decreased significantly to $2.2M from $9.9M in Q1
- Operating loss of $3.7M versus $3.9M profit in Q1 2024
GRAND RAPIDS, Mich., April 18, 2025 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier franchise operators, today reported financial results for the first quarter ended March 30, 2025.
First Quarter Highlights:
- Sales were
$154.5 million compared to$162.8 million for the same period last year. - Earnings (loss) from Operations were
$(3.7) million compared to$3.9 million for the same period last year, resulting from multiple severe weather-related closures. - Net Earnings (loss) were
$(4.3) million compared to$1.6 million for the same period last year. - Consolidated EBITDA (a non-GAAP measure) was
$2.2 million compared to$9.9 million for the same period last year.
“As previously reported, Company sales and earnings were significantly impacted by atypical weather that impacted all of its markets during the first quarter of the year, with severe weather events in its southern US markets that resulted in decreased consumer traffic and numerous temporary restaurant closures from record snow, ice and floods. Looking ahead, we are reaffirming our
During the second quarter, we are launching the Company’s first restaurant location using Wendy’s Fresh AI – the generative AI Bot technology that brings a digital automated ordering experience to the drive-thru customer. The Company is committed to leveraging technology and delivery options designed to improve customer experience as well as employee efficiency within the restaurants. The Company opened three new Wendy’s during the first quarter and plans to open 7-10 new Wendy’s through the remainder of the year as new unit-level economics continue to generate leading results, and higher guest frequency continues to reward us for contemporary restaurant designs and digital enhancements.
Morning Belle the Company’s proprietary single shift, breakfast/brunch concept, reported a strong same store sale increase of +
2025 Outlook: Better Earnings Outlook Ahead:
- Sales growth up to +
3% - Earnings from Operations growth of +
40% to +50% - Net Earnings growth up to +
50% - EBITDA growth up to +
15% - Diluted EPS growth of +
20% to +30%
The Company is focused on leveraging its robust operating platform and unique in-house restaurant development expertise to deliver consumers the highest level of quality, convenience, and affordability. Acquisitions, renovations, and new restaurant development are integral parts of our restaurant business model.
The Company’s five-year growth plan includes the acquisition and development of new Wendy’s and Morning Belle restaurants. As we plan for the next generation of growth, including new capital partners, we remain actively engaged in planning for future strategic events to enhance shareholder value and liquidity.
About the Company:
Meritage Hospitality Group is the nation’s premier restaurant operators, currently with approximately 381 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 12,000 employees across 15 States. The Company had 8,520,000 diluted weighted average shares outstanding as of fiscal year ended December 29, 2024.
The Company’s current and publicly available information pursuant to amended 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
FAQ
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