GRAND RAPIDS, Mich., Oct. 10, 2024 (GLOBE NEWSWIRE) --  Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation’s premier franchise operator, today reported financial results for the third quarter and nine months ended September 29, 2024.

2024 Third Quarter Highlights:

• Sales were $164.8 million compared to $170.3 million for the same period last year.

• Earnings from Operations were $0.4 million compared to $3.2 million for the same period last year. Of note, third quarter 2024 results included a one-time, non-cash expense of $1.8 million related to closure and dispositions.

• Net Loss was $1.8 million compared to $0.0 million for the same period last year.

• Consolidated EBITDA (a non-GAAP measure) was $6.3 million compared to $8.1 million for the same period last year.

“Company restaurant sales exceeded half a billion dollars for the first nine months, and earnings were equal to last year when adjusted for the one-time, non-cash expense of $1.8 million for closure and dispositions. We anticipate operating margins to improve as the rate of inflation in our prime costs (food, paper, and labor) continues to subside, and our restaurants introduce new products and promotions.” stated Meritage CEO, Robert E. Schermer, Jr.

The Wendy’s brand continues to demonstrate resiliency in a high inflationary period for consumers by offering speed, convenience, and affordability. Sales in our newly developed Wendy’s locations remain robust. Additionally, development costs have improved from their peak high in 2023, and interest rates have started to come down.

2024 Year-To-Date Highlights:

• Sales for the nine months were $500.1 million compared to $504.6 million for the same period last year.

• Earnings from Operations were $11.0 million compared to $13.0 million for the same period last year.

• Net Earnings were $2.8 million compared to $4.4 million for the same period last.

• Consolidated EBITDA (a non-GAAP measure) was $28.7 million compared to $29.1 million for the same period last year.

• The Company finished the third quarter with 381 restaurants in operation.

• Year-to-date results included a one-time, non-cash expense of $1.8 million related to closure and dispositions.

Outlook: Accelerating Sales & Margin Expansion Ahead

Looking ahead, Meritage is forecasting accelerated sales and operating margin expansion driven by newly developed Wendy’s and Morning Belle restaurants, reimaged restaurants, and future acquisitions.

The Company is committed to delivering on its capital allocation strategy of reinvesting in the business to drive profitable growth, and the proportionate return of free cash flow to shareholders through a combination of dividend growth and share repurchases as free cash flow and liquidity events permit.