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Wednesday, 19 April 2017 10:33

Meritage Hospitality reports record first quarter earnings

Written by  MiBiz Staff
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CFO and COO Gary Rose, left, and CEO Robert Schermer, Jr. of Meritage Hospitality CFO and COO Gary Rose, left, and CEO Robert Schermer, Jr. of Meritage Hospitality MIBIZ FILE PHOTO

GRAND RAPIDS — As it continues its streak of acquisitions, Meritage Hospitality Group Inc. (OTCQX: MHGU) remains on a growth trajectory.

The Grand Rapids-based operator of Wendy’s fast food locations and a variety of other casual sit-down restaurants yesterday reported first quarter earnings of $62 million, representing growth of 14.7 percent compared with the same quarter last year.

“The first quarter earnings results were robust, driven by our restaurant operations focus on guest satisfaction and controllable costs,” Meritage Hospitality CEO Robert Schermer said in a statement. “Customers continue to reward us for reimaged Wendy’s restaurants. The reimaged restaurants continue to produce record restaurant-level sales for Meritage in both newly constructed and renovated locations.”

The company has acquired 12 Wendy’s restaurants so far this year and has definitive agreements to acquire another 57 locations — mostly in mid-Atlantic states — in the second quarter.

The company said that the addition of 69 locations will add approximately $90 million in earnings.

Additionally, the company reported earnings increases of 106.3 percent to $3.4 million and net income growth of 244.7 percent to $1.9 million, compared with the same time period last year.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased 81.3 percent to $5.3 million compared with the first quarter in 2016.

Meritage Hospitality employs about 6,000 people and operates a total of 193 restaurants in eight states.

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