GRAND RAPIDS, Mich., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier franchise restaurant operators, announced today that it has acquired five additional Wendy’s restaurants located in the Atlanta, Georgia market area.
“The acquisition of five Atlanta area restaurants complements our existing 39 Wendy’s restaurants in the Atlanta market area and is consistent with our previously announced 2025 growth plans to expand our operating base to 435 total restaurants. We intend to immediately integrate each of the acquired Wendy’s into our operating and accounting platform and fold them into our Wendy’s remodeling program that is designed to enhance the overall guest experience”, stated Chief Executive Officer, Robert Schermer, Jr. The Company expects the five additional restaurants to add approximately $8.8 million in annual sales and be accretive to earnings going forward.
The Company continues to be a leader in new restaurant development within the Wendy’s U.S. system. With a stated goal of 400 Wendy’s restaurants, the Company recently announced its commitment to build an additional 40 Wendy’s restaurants by 2024 under the new Development Agreement. The Company is on pace for a record number of new and renovated restaurants in 2019.
During the first three quarters of 2019, the Company declared common stock cash dividends of $0.18 per share representing an increase of 100% over the same period last year along with EBITDA growth of 18.7%.
Company Outlook 2019: Sales & Earnings Acceleration
- Sales growth of +10% to 20%
- Net Earnings growth of +10% to 20%
- EBITDA growth of +15% to 25%
- Common stock dividend growth +50% to 60%
Looking Ahead: 2020
We are forecasting accelerating sales and earnings growth in 2020, driven by 2019 newly developed, reimaged and acquired restaurant coming fully on-line, as well as the nationwide roll-out of breakfast across our Wendy’s markets in the first quarter of 2020.
The Company continues to distinguish itself as a leader and innovator in the restaurant industry, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.
About Meritage
Meritage Hospitality Group is one of the nation’s premier franchise operators, with 332 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 growing workforce of approximately 10,500 employees. The Company’s public filings can be viewed at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.
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.
CONTACT:
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
(616) 776-2600