Meritage Reports Third Quarter 2026 Results
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Meritage Hospitality Group (OTCQX: MHGU) reported third-quarter 2026 sales of $133.6 million, down from the same period last year. Sales compared with $154.6 million a year earlier. Net loss narrowed to $7.7 million from $9.0 million, while operating loss remained $6.6 million. Quarterly results included $2.4 million in one-time professional fees. Consolidated EBITDA, a non-GAAP earnings measure, improved to a $2.9 million loss from a $4.3 million loss.
For the nine months ended September 27, 2026, sales fell to $407.2 million from $472.7 million. Operating loss widened to $31.5 million from $7.3 million, and net loss widened to $30.8 million from $12.9 million. One-time professional fees and closing and disposition costs totaled $19.6 million. Meritage is restructuring its business and expects the full store-level economic benefits of its Wendy’s portfolio actions in 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net loss narrowed $1.3 million to $7.7 million from $9.0 million a year earlier.
- Moderate pointThird-quarter non-GAAP EBITDA loss improved $1.4 million to $2.9 million from $4.3 million a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Wendy’s portfolio actions are expected by Meritage to deliver their full store-level economic benefits in 2027.
Negative
- Moderate pointNine-month operating loss widened to $31.5 million from $7.3 million in the same period last year.
- Moderate pointNine-month net loss widened to $30.8 million from $12.9 million in the same period last year.
- Moderate pointNine-month non-GAAP EBITDA fell to an $18.4 million loss from $5.4 million in earnings a year earlier.
- Moderate pointNine-month sales declined to $407.2 million from $472.7 million in the same period last year.
- Moderate pointNine-month results included $19.6 million in one-time charges for professional fees and closing and disposition costs.
- Moderate pointThird-quarter sales declined to $133.6 million from $154.6 million in the same period last year.
- Moderate pointThird-quarter operating loss remained $6.6 million, unchanged from the same period last year.
- Minor pointThird-quarter results included $2.4 million in one-time professional fees.
AI-generated analysis. How Rhea-AI works. Not financial advice.
GRAND RAPIDS, Mich., Nov. 13, 2026 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), today reported financial results for the third quarter and nine months ended September 27, 2026.
2026 Third Quarter Highlights:
- Sales were
$133.6 million compared to$154.6 million for the same period last year, which included approximately 70 fewer stores in operation. - Net (Loss) from Operations was (
$6.6 ) million compared to ($6.6 ) million for the same period last year. The third quarter of 2026 results included one-time professional fees charges of$2.4 million . - Net (Loss) was (
$7.7 ) million compared to ($9.0 ) million for the same period last year, representing an improvement of$1.3 million . - Consolidated EBITDA (a non-GAAP measure) was a loss of (
$2.9 ) million compared to ($4.3 ) million for the same period last year, representing an improvement of$1.4 million .
“The Company is undertaking a major restructuring of its business and improving store-level profitability, and we believe in the strength of the brand. Wendy’s has a great legacy with proven long-term resilience, and the new senior leadership team is acutely focused on accelerating product innovation, marketing and clear alignment between franchisees and the brand. Wendy’s CEO, Bob Wright, recently announced that breakfast will become optional for Wendy’s franchisees, which is intended to bolster franchisee profitability
Furthermore, the Wendy’s brand recently announced “Dave’s Way” which is intended to lead with an operation first turnaround to strengthen its foundation, enhance menu and marketing performance, and modernize how customers experience the brand. “Dave’s Way” is about igniting the energy and distinctiveness that have always made Wendy's special, while positioning the brand and its franchisees for profitable store-level growth as we move forward.
2026 Year-To-Date Highlights:
- Sales were
$407.2 million compared to$472.7 million for the same period last year. - Net (Loss) from Operations was (
$31.5 ) million compared to ($7.3 ) million for the same period last year. The current year included one-time charges of$19.6 million related to one-time professional fees and closing and disposition costs. - Net (Loss) was (
$30.8 ) million compared to ($12.9 ) million for the same period last year. - Consolidated EBITDA (a non-GAAP measure) was a loss of (
$18.4 ) million compared to earnings of$5.4 million for the same period last year.
About Meritage:
Meritage Hospitality Group is one of the nation’s premier restaurant operating platforms, currently with 276 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 9,000 employees. As of the third quarter in 2026, the Company had total weighted average fully diluted common shares outstanding of approximately 7,112,000 shares.
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 MHGUQ/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 .
CONTACT:
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
(616) 776-2600
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When does Meritage expect the benefits of its Wendy’s portfolio restructuring?
Meritage expects the full economic benefits of its Wendy’s portfolio actions to be realized at the store level in 2027. The company is undertaking a restructuring of its business.