Added to YB: 2025-04-22
Pitch date: 2025-03-02
MHGU [bullish]
Meritage Hospitality Group Inc.
-72.41%
current return
Author Info
No bio for this author
Company Info
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy’s, Morning Belle, and Stan’s Tacos, as well as Taco John’s brand names in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia.
Market Cap
$83.0M
Pitch Price
$14.36
Price Target
26.00 (+556%)
Dividend
1.68%
EV/EBITDA
8.15
P/E
22.47
EV/Sales
1.01
Sector
Hotels, Restaurants and Leisure
Category
special_situation
Meritage Hospitality Group Inc. - $MHGU
MHGU: 2nd largest Wendy's franchisee (376 stores) at 6.5x 2025E EBITDA, 0.5x EV/sales, $880K/store vs $925K in recent Carrols deal. Aging insiders (68% ownership) seek 'liquidity event'. Prime costs normalizing to 60%. Wendy's 400-unit cap limits growth after Taco John's expansion failed (53% comp sales decline). $26 PT (75% upside).
Read full article (11 min)