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GRAND RAPIDS, Mich., Jan. 17, 2025 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise restaurant operator, today reported preliminary financial results for the fourth quarter and fiscal year ended December 29, 2024, ahead of presenting at the Sidoti Micro-Cap Conference.
2024 Fourth Quarter Highlights:
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Sales increased 0.5% to $168.7 million compared to sales of $167.9 million for the same period last year.
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Earnings (Loss) from Operations were $(0.1) million compared to $4.8 million for the same period last year.
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Net Income increased 227% to $5.2 million compared to $1.6 million for the same period last year.
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Consolidated EBITDA (a non-GAAP measure) increased 40.8% to $13.7 million compared to $9.7 million for the same period last year.
2024 Full-Year Highlights:
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Sales were $668.8 million compared to $672.5 million last year.
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Earnings from Operations were $10.9 million compared to $17.8 million last year. The current fiscal year included operational and one-time charges of $8.6 million associated with non-Wendys restaurant closings and dispositions.
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Net Earnings increased 33.1% to $8.0 million compared to $6.0 million last year.
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Consolidated EBITDA (a non-GAAP measure) increased 9.0% to $42.4 million compared to $38.9 million last year.
“New Wendy’s restaurants and reworked locations continue to drive strong returns on investment, highlighting the strength and resilience of the Wendy’s restaurant brand. Earnings from operations this year included operational and one-time charges of approximately $8.6 million associated with non-Wendy’s restaurant closings and disposition costs. Our restaurant operations and real estate development teams continued to execute at a best-in-class standards, supported by our robust operating and technology platform,” stated Meritage CEO, Robert E. Schermer, Jr.
Looking ahead, the Company is forecasting strong earnings growth for fiscal 2025, driven by Wendy’s restaurant reimaging and continued margin improvements as commodity and labor inflation moderate. In Q1 2025 we will be rolling out our first Wendy’s FreshAI – the Wendy’s generative AI technology that brings a digital automated ordering experience to the drive-thru customer. The Company is committed to leveraging technology and delivery options designed to improve customer experience and employee efficiency in the restaurants. The company ended the year with 379 restaurants across fifteen states and has an exciting development pipeline of 35-40 new and reimaged locations planned throughout 2025, including additions to our Morning Belle restaurant portfolio, the Company’s growing single shift, breakfast/brunch concept.