2015 Investor Review - Meritage Hospitality Group

: MHGU
2015 Investor Review
6 States • Over 150 Restaurants • 4,100 Employees
Freighters
Driving
Strategic
Growth
Pursuing Expansion
Meritage continues to execute its strategic growth plan. The
Company expanded its Wendy’s market presence in Florida and
Georgia with acquisitions and new restaurant development.
Meritage owns and operates 151 restaurants represented by 4
brands; Wendy’s, Twisted Rooster, Crooked Goose and Freighters
Eatery & Taproom. Wendy’s restaurants represent 97% of the
Company’s current restaurant holdings.
Defining Uncommon Hospitality
Our people are the key to our success and all 4,100 teammates
play a vital role in our continued growth. Through strategic
organizational development initiatives, we continue to invest
in our people by finding innovative ways to recruit, retain and
reward top talent.
150 Restaurants by 2015
In 2010 the Company launched
a strategic expansion intiative to grow
to“150 Restaurants by 2015”. Five years
later in January 2015, the Company
acquired nine Wendy’s in Talahassee,
FL, bringing the Company total to 151
restaurants.
2010
73 Restaurants
1 Casual Dining Concept
3 States
1,900 Employees
2015
151 Restaurants
4 Casual Dining Concepts
6 States
4,100 Employees
Stock Performance
Sales (millions)
$205
$160.2
$92
$99
2011
2012
Projection
$137.8
2013
2014
EBITDA
(millions)
Continued Return
On Your Investment
Meritage stock closed 2014 at $5.04 per share. In 2014,
the Company issued $.03 in special dividends,
representing a 50% increase over the previous year.
The Company is forecasting continued earnings and
dividend growth in 2015.
2015
Five Year Stock Growth
$14.0
$6
: MHGU
$5
Projection
$8.8
$8.4
$5.3
$5.0
+285%
$4
$3
$2
2011
2012
2013
2014
$1
2015
2010
Net Income
$2.8
2011
2012
2013
2014
Projection
$3.1
$2.3
2012
2013
2014
2015
(millions)
$5.4
$2.9
2011
2015
2015 Outlook
The Company is focused on multiple growth initiatives in
2015, including the integration of recently acquired and
newly developed restaurants. We expect to continue our
growth trends with financial targets of:
• Sales Growth +28%
• EBITDA Growth +62%
• Net Income Growth +96%
A Leader in Wendy’s® Image Activation
Image Activation is a restaurant reimaging campaign focused on
contemporizing the Wendy’s brand. The Wendy’s Company set a systemwide goal to re-image 60% of the restaurants by 2020. Meritage plans to
have completed 14 Image Activation restaurants by the end of 2015.
A1A JAX Beach
Jacksonville, FL
Knapp’s Corner
Grand Rapids, MI
Mt. Zion
Morrow, GA
Argyle
Jacksonville, FL
Airport
Jacksonville, FL
Loganville
Loganville, GA
Lawrenceville Hwy.
Lilburn, GA
Spout Springs
Braselton, GA
Nocatee
FL