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GRAND RAPIDS, Mich., June 21, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced it has entered into a Development Agreement with Wendy’s under the Groundbreaking Incentive Program to develop 40 new Wendy’s restaurants.
Under terms of the Development Agreement the Company will develop 40 new Wendy’s restaurants by the end of 2024 and receive significant economic incentives provided under the Groundbreaking Incentive Program, which includes royalty and national marketing fee relief. The development and incentive programs are subject to the Company fulfilling its Joint Capital Plan to re-image 10% of its existing restaurants each year and customary Wendy’s real estate approvals. The Company plans to invest approximately $100.0 million in the development of the 40 Wendy’s restaurants through a combination of cash on hand and development credit facilities.
“Restaurant development is an important part of our business model, which follows the acquisition and integration of restaurants in designated market areas. We are a leader of restaurant development within the Wendy’s system and are currently on pace for a record number of new-builds in 2019 and 2020, located across our 16 states of operations. New restaurants have historically provided us with a strong return on investment, as guests reward us for the new building design and customer enhancements,” stated Meritage CEO, Robert Schermer, Jr.
The Company reported strong earnings growth in the first quarter and believes the sales and earnings growth will accelerate in 2020, driven by new development and reimaged restaurant locations. During the first six months of 2019 the Company has increased common stock dividends 200% to $0.12 per shares compared $0.04 last year during the same period.
The Company 2019 Full-Year Outlook: Strong Earnings Growth Ahead
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 320 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 10,000 employees. The Company’s public filings can be viewed at www.otcmarkets.com, under the stock symbol MHGU, or the Company’s website www.meritagehospitality.com.
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’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 Ext 1012