Meritage Reports Third Quarter 2025 Results
GRAND RAPIDS, Mich., Nov. 11, 2025 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), today reported financial results for the third quarter and nine months ended September 28, 2025.
2025 Third Quarter Highlights:
- Sales were $154.6 million compared to $164.8 million for the same period last year.
- Earnings (Loss) from Operations were ($6.6) million compared to $0.6 million for the same period last year. Of note, third quarter of 2025 results included a one-time, non-cash charge of $2.7 million.
- Net Earnings (Loss) was ($9.0) million compared to ($1.8) million for the same period last year.
- Consolidated EBITDA (a non-GAAP measure) was ($4.3) million compared to $6.3 million for the same period last year.
“We are navigating through a very challenging external consumer environment in the QSR industry, with record third quarter prime costs (food, paper and labor), increased discounting and a general decline in transactions due to lower consumer discretionary income. The Company is undertaking a major restructuring of its business and is focused on cost reductions to preserve resources and improve store-level margins. Wendy’s is a legacy brand with proven long-term resilience and a new senior leadership team focused on accelerating product innovation, marketing and clear alignment between franchisees and the brand. This year is difficult for us by every measure, capturing the full extent of external headwinds, heavy discounts and the incurrence of restructuring costs to stabilize our franchise business model. We have taken many corrective actions and intend to recognize the full extent of these impacts as we move into 2026, hoping to return to meaningful results going forward,” stated Meritage CEO, Robert E. Schermer, Jr.
The Wendy’s brand recently announced “Project Fresh” which is intended to take decisive steps together with its franchisees as One Wendy 's to strengthen its foundation, enhance restaurant performance and modernize how customers experience the brand. Project Fresh is about reigniting the energy and distinctiveness that have always made Wendy 's special, while positioning the brand and its franchisees for profitable store-level growth. The project prioritizes a focus on existing stores verses new store growth.
2025 Year-To-Date Highlights:
- Sales were $472.7 million compared to $500.1 million for the same period last year.
- Earnings from Operations were ($7.3) million compared to $11.2 million for the same period last year.
- Net Earnings (Loss) were ($13.0) million compared to $2.8 million for the same period last.
- Consolidated EBITDA (a non-GAAP measure) was $5.4 million compared to $28.7 million for the same period last year.
Independent Concepts:
The Company operates nine independent restaurants under its two concepts, Morning Belle and Blue Porch Bar & Grill. Restaurants were launched as the Company’s own original concepts, each with a unique environment and offerings tailored to consumer preferences. Morning Belle is the Company’s unique breakfast, brunch, lunch concept, while Blue Porch Bar & Grill is designed to be approachable and welcoming with a menu featuring a variety of pub style favorites. These independent concepts continue to perform with strong same store sales growth of 12.3% in the third quarter and 14.8% year to date.
2026 Outlook: Wendy’s Revitalization Ahead
Looking ahead, Meritage is forecasting Wendy’s sales and operating margin improvements in 2026 driven by elements of Project Fresh, including system optimization, product innovation and strategic marketing.
Meritage continues to work hard to distinguish itself as a multi-unit operations leader and platform innovator, striving for best-in-class results through a performance-based culture committed to operational excellence and real estate development.
About Meritage:
Meritage Hospitality Group is one of the nation’s premier restaurant operating platforms, currently with 384 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 12,000 employees. As of the third quarter in 2025, the Company had total weighted average fully diluted common shares outstanding of approximately 6,695,000 shares.
The Company’s current and publicly available information pursuant to amended 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
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