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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

Show full summary:
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)