Meritage Reports Second Quarter 2025 Results; New Products & Innovation Cycle Ahead
Meritage Hospitality Group (OTCQX: MHGU), a major franchise operator, reported challenging Q2 2025 results with sales declining to $163.5 million from $172.4 million year-over-year. Net earnings decreased significantly to $0.335 million from $3.0 million, while EBITDA fell to $7.5 million from $12.5 million.
The company's proprietary concept, Morning Belle, showed strong performance with a 16.9% same-store sales increase, driven by menu innovations and higher guest frequency. However, six-month results showed broader challenges, with the company reporting a net loss of $(4.0) million compared to $4.6 million profit last year.
Management acknowledged industry-wide challenges but expressed optimism about new Wendy's leadership and strategic initiatives focused on customer engagement and operational simplification.
Meritage Hospitality Group (OTCQX: MHGU), un importante operatore in franchising, ha riportato un difficile secondo trimestre 2025 con vendite in calo a $163.5 million da $172.4 million su base annua. L'utile netto 猫 diminuito sensibilmente a $0.335 million da $3.0 million, mentre l'EBITDA 猫 sceso a $7.5 million da $12.5 million.
Il concept proprietario dell'azienda, Morning Belle, ha mostrato buone performance con un aumento same-store delle vendite del 16.9%, sostenuto da innovazioni nel menu e da una maggiore frequenza dei clienti. Tuttavia, i risultati a sei mesi evidenziano sfide pi霉 ampie: la societ脿 ha registrato una perdita netta di $(4.0) million rispetto a un utile di $4.6 million dell'anno precedente.
La direzione ha riconosciuto le difficolt脿 del settore, ma si 猫 detta fiduciosa nella nuova leadership di Wendy's e nelle iniziative strategiche mirate al coinvolgimento dei clienti e alla semplificazione operativa.
Meritage Hospitality Group (OTCQX: MHGU), un importante operador franquiciado, present贸 un complicado segundo trimestre de 2025 con ventas que cayeron a $163.5 million desde $172.4 million interanual. Las ganancias netas disminuyeron notablemente a $0.335 million desde $3.0 million, mientras que el EBITDA se redujo a $7.5 million desde $12.5 million.
El concepto propio de la compa帽铆a, Morning Belle, registr贸 un s贸lido desempe帽o con un incremento same-store de ventas del 16.9%, impulsado por innovaciones en el men煤 y una mayor frecuencia de visitas. No obstante, los resultados semestrales muestran retos m谩s amplios: la compa帽铆a inform贸 una p茅rdida neta de $(4.0) million frente a una ganancia de $4.6 million del a帽o anterior.
La direcci贸n reconoci贸 las dificultades del sector, pero se mostr贸 optimista respecto al nuevo liderazgo de Wendy's y a las iniciativas estrat茅gicas centradas en el compromiso del cliente y la simplificaci贸n operativa.
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須岇偓 瓿犾湢鞚� 旖橃厜韸胳澑 Morning Belle鞚� 氅旊壌 順侅嫚瓿� 氚╇ 牍堧弰 歃濌皜鞐� 頌橃瀰鞏� same-store 毵れ稖鞚� 16.9% 歃濌皜頃橂姅 霌� 鞏戫樃頃� 靹标臣毳� 氤挫榾鞀惦媹雼�. 雼る 氚橁赴 鞁れ爜鞚� 氤措嫟 甏戨矓鞙勴暅 鞏措牑鞗�鞚� 氚橃榿頃�, 須岇偓電� 鞝勲厔鞚� $4.6 million 鞚挫澋瓿� 雼Μ $(4.0) million鞚� 靾滌啇鞁れ潉 氤搓碃頄堨姷雼堧嫟.
瓴届榿歆勳潃 鞐呹硠 鞝勲皹鞚� 霃勳爠 瓿检牅毳� 鞚胳爼頃橂┐靹滊弰 Wendy's鞚� 靸堧鞖� 毽崝鞁臣 瓿犼皾 彀胳棳 氚� 鞖挫榿 雼垳頇旍棎 欷戩爯鞚� 霊� 鞝勲灥鞝� 鞚措媹靺旐嫲敫岇棎 雽�頃� 雮欔磤鞝侅澑 鞛呾灔鞚� 氚濏様鞀惦媹雼�.
Meritage Hospitality Group (OTCQX: MHGU), un important exploitant en franchise, a publi茅 des r茅sultats difficiles au T2 2025, avec des ventes en baisse 脿 $163.5 million contre $172.4 million l'an pr茅c茅dent. Le b茅n茅fice net a fortement diminu茅 脿 $0.335 million contre $3.0 million, tandis que l'EBITDA est tomb茅 脿 $7.5 million contre $12.5 million.
Le concept propri茅taire du groupe, Morning Belle, a bien perform茅 avec une hausse des ventes same-store de 16.9%, port茅e par des innovations au menu et une fr茅quence de visite accrue. Toutefois, les r茅sultats semestriels r茅v猫lent des difficult茅s plus larges : la soci茅t茅 a enregistr茅 une perte nette de $(4.0) million contre un b茅n茅fice de $4.6 million l'ann茅e pr茅c茅dente.
La direction a reconnu les d茅fis du secteur, mais s'est montr茅e optimiste quant 脿 la nouvelle direction de Wendy's et aux initiatives strat茅giques ax茅es sur l'engagement client et la simplification des op茅rations.
Meritage Hospitality Group (OTCQX: MHGU), ein gro脽er Franchise-Betreiber, meldete ein schwieriges zweites Quartal 2025: Der Umsatz sank auf $163.5 million gegen眉ber $172.4 million im Vorjahr. Der Nettogewinn fiel deutlich auf $0.335 million von $3.0 million, w盲hrend das EBITDA von $12.5 million auf $7.5 million zur眉ckging.
Das hauseigene Konzept Morning Belle zeigte starke Ergebnisse mit einem same-store-Umsatzanstieg von 16.9%, getragen von Men眉innovationen und erh枚hter G盲steh盲ufigkeit. Die Halbjahreszahlen machen jedoch breitere Probleme deutlich: Das Unternehmen meldete einen Nettoverlust von $(4.0) million gegen眉ber einem Gewinn von $4.6 million im Vorjahr.
Das Management r盲umte branchenweite Herausforderungen ein, zeigte sich aber optimistisch hinsichtlich der neuen F眉hrung bei Wendy's und der strategischen Ma脽nahmen zur Kundenbindung und zur Vereinfachung der Abl盲ufe.
- None.
- Q2 sales declined 5.2% to $163.5M from $172.4M year-over-year
- Q2 net earnings dropped 88.8% to $0.335M from $3.0M year-over-year
- Six-month results showed $4.0M net loss compared to $4.6M profit last year
- EBITDA decreased 40% to $7.5M in Q2 from $12.5M last year
GRAND RAPIDS, Mich., Aug. 12, 2025 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation鈥檚 premier franchise operators, today reported financial results for the second quarter ended June 29, 2025.
Second Quarter 2025 Highlights
- Sales were
$163.5 million compared to$172.4 million for the same period last year. - Earnings from Operations were
$3.0 million compared to$6.7 million for the same period last year. - Net Earnings were
$0.33 5 million compared to$3.0 million for the same period last year. - Consolidated EBITDA (a non-GAAP measure) was
$7.5 million compared to$12.5 million for the same period last year.
鈥淥ur second quarter results reflect broader industry dynamics, including shifts in consumer behavior and intensified promotional activity across QSR. While mindful of the macroeconomic environment, we are energized by recent Wendy鈥檚 leadership changes and fully aligned behind a strategic roadmap focused on knowing our customers better and reaching them more effectively, reducing programming complexity and increasing focus and strong collaboration. These initiatives are designed to unlock greater agility and long-term profitable growth for the brand,鈥� stated Robert E. Schermer, Jr., the Company鈥檚 CEO.
Morning Belle
Morning Belle, the Company鈥檚 proprietary daytime-only concept, serving Breakfast, Brunch and Lunch, reported a same store sales increase of +
Six-Month 2025 Highlights
- Sales for the six months were
$318.1 million compared to sales of$335.2 million for the same period last year. - Earnings (Loss) from Operations were
$(0.7) million compared to$10.6 million for the same period last year. - Net Earnings (Loss) were to
$(4.0) million compared to$4.6 million for the same period last year. - Consolidated EBITDA (a non-GAAP measure) was
$9.7 million compared to$22.4 million for the same period last year.
Meritage continues to strive for best-in-class operations through a performance-based culture committed to operational excellence, strategic acquisitions, and real estate development. The Company continues to explore strategic opportunities to maximize shareholder value and provide liquidity.
About the Company
Meritage Hospitality Group is one of the nation鈥檚 premier restaurant operators, currently with 381 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 12,000 employees. As of June 29, 2025, the Company had fully diluted weighted average common shares outstanding of 6,694,304.
The Company鈥檚 current and publicly available information pursuant to amended SEC Rule 15c2-11 and FINRA Rule 6432 can be found at , under the stock symbol MHGU/Disclosures or the Company鈥檚 website, .
SAFE HARBOR STATEMENT
Certain information in this news 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鈥檚 actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company鈥檚 Safe Harbor Statement at .
CONTACT:
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
616-776-2600 ext. 1012
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