GRAND RAPIDS, Mich., April 20, 2016 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today reported financial results for the first quarter ended April 3, 2016.
2016 First Quarter Highlights
- Sales increased 16.3% to a record $54.1 million from $46.5 million for the same period last year.
- Earnings from Operations were $1.6 million compared to $1.8 million for the same period last year. 2016 included additional one-time charges of $1.2 million associated with restaurant preopening, acquisition, closing and disposition expenses.
- Net Income was $541,000 compared to $1.1 million for the same period last year.
- Consolidated EBITDA (a non GAAP measure) was $2.9 million compared to $3.3 million for the same period last year.
- The Company paid its 54th consecutive quarterly dividend on its Series B Cumulative Convertible Preferred shares of $.20 per share, on April 1, 2016.
“Our first quarter sales were strong and earnings from operations improved by approximately $1.1 million prior to the one-time charges described above under earnings from operations. Customers are continuing to reward us for improved menu offerings and renovated Wendy’s restaurants. In our casual dining segment we are scheduled to open a new flagship restaurant named the Wheelhouse in the second quarter,” stated Robert E. Schermer, Jr., the Company’s CEO.
The reimaged Wendy’s building design continues to produce record restaurant-level sales for Meritage in both newly constructed and renovated restaurants. The Company is planning to complete 18 reimaged restaurants in 2016 and believes the investment will continue to provide a multi-year catalyst for sales and earnings growth as the brand transformation journey accelerates.
Meritage continues to distinguish itself as a performance leader and innovator in the quick service and casual restaurant segments, achieving best in class results through strategic acquisitions, real estate design and development innovations, and the development of people committed to operational excellence. The Company continues to evaluate acquisition opportunities where it can leverage its unique, web-based operating platform.
About Meritage
Meritage is one of the nation’s premier restaurant operators, currently operating 164 quick service and casual dining restaurants in seven states. The Company is headquartered in Grand Rapids and employs a workforce of approximately 5,100. The Company’s public filings can be viewed at www.otcqx.com under the stock symbol MHGU, or at the Company’s website, www.meritagehospitality.com. The Company continues to seek tuck-in acquisitions and new restaurant roll-out opportunities where it can leverage its web-based operating platform and development skill-set within the Wendy’s franchise system and casual dining segment.
SAFE HARBOR STATEMENT
Certain information in this news 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.