Meritage Announces Increased Third Quarter Common Stock Dividend

Rhea-AI Summary

Meritage Hospitality Group (OTCQX: MHGU) has announced a special quarterly dividend of $0.08 per share, payable on October 1, 2021, to shareholders of record on September 15, 2021. This marks a significant increase from last year’s dividend of $0.00. The company recently reported record second quarter financial results and secured a $302.8 million senior credit facility, enhancing future cash flow. Meritage aims for $1 billion in revenue by 2026, with projected sales growth of 10% to 15% and dividend growth of 100% to 125% for 2021.

Positive

• Declared a special quarterly dividend of $0.08, up from $0.00 last year.
• Reported record second quarter financial results.
• Secured a $302.8 million senior credit facility offering favorable terms.
• Targeting $1 billion in revenue by 2026 with a strong growth plan.
• Projected sales growth of 10% to 15% for 2021.

Negative

• None.

GRAND RAPIDS, Mich., Aug. 17, 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. The special dividend is payable on October 1, 2021 to shareholders of record on September 15, 2021.

The Company recently reported record second quarter financial results and a new accretive $302.8 million senior credit facility which will provide significant future cash flow benefits to the Company including, but not limited to, a decrease in base pricing of 40 basis points, increased amortization to 12 years and a SWAP rate of 0.998%.

“Today’s dividend of $0.08 compares to $0.00 for the same period last year, as last year we were dealing with many COVID-19 unknowns. Our targeted full-year common share dividend of $0.32 ($0.08 per quarter) compares to $0.14 last year and is consistent with our long-standing shareholder goal to provide dividend growth commensurate with earnings growth,” stated Robert Schermer, Jr., CEO.

“As noted above, our recently expanded credit facility and improved operating system investments support management’s ability to meet the Company’s five-year plan of achieving $1 billion in revenue by year-end 2026. The plan includes 400 Wendy’s, in-house brand development and the addition of a new QSR franchise brand,” added Schermer.

Full-Year Outlook: 2021

• 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%
  

Meritage continues to distinguish itself as a national leader and innovator in the quick service and new restaurant segments, striving for best-in-class results through a performance-based culture committed to operational excellence, real estate development and strategic acquisitions.

About the Company

Meritage Hospitality Group is the nation’s premier franchise operator, with 345 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. The Company has approximately 9.6 million diluted weighted average 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.

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 dividend amount for Meritage Hospitality Group is $0.08 per share.

When is the dividend payable for MHGU?

The dividend is payable on October 1, 2021.

When is the record date for the MHGU dividend?

The record date for the dividend is September 15, 2021.

What is Meritage Hospitality Group's revenue target for 2026?

Meritage aims to achieve $1 billion in revenue by the end of 2026.

What is the expected sales growth for Meritage in 2021?

Sales growth for 2021 is projected to be between 10% to 15%.