Meritage Announces Increased First Quarter Common Stock Dividend

Rhea-AI Summary

Meritage Hospitality Group (OTCQX: MHGU) announced a special quarterly dividend of $0.08 per share, a 14.3% increase from last year. The dividend will be paid on March 26 to shareholders recorded by March 15, 2021. The company's CEO highlighted strong sales momentum following record 2020 earnings despite pandemic challenges. Meritage plans to open 20 new locations and modernize 30 existing locations in 2021, aiming for sales growth of 10-15% and significant growth across earnings and EBITDA.

Positive

• 14.3% increase in quarterly dividend to $0.08 per share.
• Plans to open 20 new locations and modernize 30 existing locations in 2021.
• Strong sales momentum and record earnings in 2020.
• Projected sales growth of 10-15% and earnings growth of 20-30%.

Negative

• None.

GRAND RAPIDS, Mich., March 02, 2021 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, today announced that the Company’s Board of Directors approved a special quarterly dividend of $0.08 per share, representing a 14.3% increase over the dividend for the same period last year. The dividend is payable on March 26 to shareholders of record on March 15, 2021.

“We are pleased to announce a 14.3% increase in our first quarter special dividend preceded by 2020 record sales and earnings as we successfully navigated many pandemic challenges. We entered the first quarter with solid sales momentum supported by outstanding restaurant operating teams and the strength of the Wendy’s restaurant brand. We remain focused on executing our critical priorities, including employee and customer safety while delivering speed, convenience and quality food,” stated Meritage CEO, Robert E. Schermer, Jr.

The Company is committed to Wendy’s capital investments and brand initiatives with plans to build 20 new locations and modernize 30 existing locations in 2021. The Company’s financial targets reflect the gradual re-opening of dine-in operations to 100% occupancy as the year progresses, and the continued development of new and wholly owned brands.

2021 Full-Year Outlook: Strong Growth Ahead

• Sales growth of +10% to 15%
• Earnings from Operations growth of +20% to 30%
• Net Earnings growth of +20% to 30%
• EBITDA growth of +15% to 20%
• Dividend growth +100% to 125%
  

The Company is inspired by opportunity, leveraging a best-in-class operating platform and restaurant development expertise, while delivering the Wendy’s brand focus on quality, convenience and affordability.

About the Company

Meritage Hospitality Group is one of the nation’s premier restaurant operators, currently 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 11,000 employees. At fiscal year-end 2020, the Company had total weighted average fully diluted common shares outstanding of 9,407,417 and Fully Diluted EPS of $1.58.

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 is the special dividend amount for MHGU?

The special quarterly dividend for MHGU is $0.08 per share.

When will the MHGU dividend be paid?

The dividend will be paid on March 26, 2021.

What is the increase in the MHGU dividend compared to last year?

The dividend represents a 14.3% increase over the same period last year.

What growth is MHGU projecting for 2021?

MHGU projects sales growth of 10-15% and earnings growth of 20-30% for 2021.