Meritage Announces Annual Meeting Results And Second Quarter Dividend

Rhea-AI Summary

Meritage Hospitality Group announced results from its Annual Shareholders Meeting and declared a second-quarter dividend. Shareholders approved the election of six directors for a one-year term. The Board of Directors approved a $0.06 per share dividend, payable on July 1, 2024, a 100% increase from the prior year. CEO Robert E. Schermer, Jr. highlighted a positive earnings outlook, with expected sales growth of 5% to 10%, earnings from operations growth of 65% to 75%, net income increase of 145% to 155%, and EBITDA growth of 30% to 40% for 2024. The company continues to focus on expanding its Wendy’s and Morning Belle restaurant operations.

Positive

• Shareholders approved the election of six directors for a one-year term.
• Quarterly dividend of $0.06 per share represents a 100% increase over the same period last year.
• Positive earnings outlook with sales growth expected between 5% to 10% for 2024.
• Earnings from operations projected to grow by 65% to 75%.
• Net income anticipated to increase by 145% to 155%.
• EBITDA expected to grow by 30% to 40%.
• Focus on expanding operations of Wendy’s and Morning Belle restaurants.

Negative

• None reported.

GRAND RAPIDS, Mich., May 21, 2024 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, announced today during the Annual Shareholders Meeting, that the Company’s shareholders approved the election of six directors: Chris A. Armbruster, John W. Inwright, Duane F. Kluting, Dirk J. Pruis, Gary A. Rose, Robert E. Schermer, Jr. Each director will serve a one-year term until the 2025 annual meeting. The CEO’s Report, which followed the formal meeting, is available on the Company’s website and OTCQX: MHGU.

Common Stock Special Dividend:

Following the Annual Shareholders Meeting, the Company’s Board of Directors approved a quarterly dividend of $0.06 per share. The dividend is payable on July 1, 2024, to shareholders of record on June 15, 2024. The dividend represents a 100% increase over the same period last year.

“Our earnings from operations outlook remains healthy for the second half of the year with the food and labor inflation improvements that we have been experiencing. We are focused on balancing restaurants sales and operations with the development obligations and opportunities of new Wendy’s and Morning Belle restaurants,” stated Meritage CEO, Robert E. Schermer, Jr.

2024 Outlook: Earnings Growth Ahead

• Sales +5% to +10%
• Earnings from Operations. +65% to +75%
• Net Income +145% to +155%
• EBITDA +30% to + 40%

The Company is focused on delivering quality, convenience, and affordability while leveraging its best-in-class restaurant operating platform throughout the United States.

About the Company:

Meritage Hospitality Group is the nation’s premier franchise operator, currently with 388 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Mississippi, Missouri, 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.

As of March 31, 2024, the Company had total Weighted Average Fully Diluted Shares Outstanding of 8,241,318 shares.

The Company’s current and publicly available information pursuant to 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.

CONTACT: Robert E. Schermer, Jr., CEO
Meritage Hospitality Group, Inc.
(616) 776-2600

FAQ

What was the result of Meritage Hospitality Group's Annual Shareholders Meeting in 2024?

Shareholders approved the election of six directors for a one-year term.

What dividend did Meritage Hospitality Group declare for the second quarter of 2024?

The Board of Directors approved a quarterly dividend of $0.06 per share, payable on July 1, 2024.

How does the 2024 second-quarter dividend compare to last year for Meritage Hospitality Group?

The $0.06 per share dividend represents a 100% increase over the same period last year.

What is the 2024 earnings outlook for Meritage Hospitality Group?

The company expects sales growth of 5% to 10%, earnings from operations growth of 65% to 75%, net income increase of 145% to 155%, and EBITDA growth of 30% to 40%.

What are Meritage Hospitality Group's expansion plans?

The company is focused on expanding its Wendy’s and Morning Belle restaurant operations.