Meritage Announces Common Stock Dividend; Following Strong Operating Results

Grand Rapids, Michigan, UNITED STATES


GRAND RAPIDS, Mich., Dec. 08, 2020 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced that the Company’s Board of Directors approved a special quarterly dividend of $0.07 per share at the December 8, 2020 meeting. The dividend is payable on December 29, 2020, to shareholders of record on December 21, 2020.

Recently, the Company announced strong results for the third quarter ended September 27, 2020. Third quarter sales increased 15.9% to $136.6 million while Consolidated EBITDA (a non-GAAP measure) increased 26.5% to $12.8 million. We continue to experience improvement in Wendy’s operating results across our markets and foresee stabilizing sales and costs in 2021. Our restaurant management teams continue to build on our legacy as a responsible consumer choice for speed, convenience and affordability by focusing on providing a safe environment for both customers and crew.

“In 2020, the Company opened seven new Wendy’s restaurants and one new Morning Belle restaurant. Looking ahead to 2021, we are planning to build 22 new restaurants and renovate 30 of our existing Wendy’s restaurants. Our newly built and reimaged Wendy’s restaurants continue to provide a strong catalyst for continued sales and earnings performance which provides for dividend growth commensurate with earnings growth,” stated Meritage CEO, Robert Schermer, Jr.

The Company’s growth plan includes expanding the Wendy’s operations to 400 restaurants and the development of 35 company branded restaurants. Meritage provides best in class results through a performance-based culture committed to operational excellence, strategic acquisitions and real estate development.

Meritage Hospitality Group, Inc. is one of the nation’s premier restaurant operators, with 341 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 10,500 employees. The Company has approximately 9.7 million (fully diluted) common shares outstanding. 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 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