Meritage Hospitality Q4 sales fall, net loss widens on high costs, closures

Meritage Hospitality

20/01/2026 03:21

Overview

Franchise operator's Q4 sales fell to $145 mln, impacted by high costs and closures

Company reported Q4 net loss of $13.4 mln, down from $5.2 mln profit last year

Company expects EBITDA recovery in 2026 with cost-saving initiatives and new products

Outlook

Meritage expects 2026 sales of $610 mln to $620 mln

Company projects 2026 EBITDA of $18.0 mln to $20.0 mln

Meritage anticipates earnings from operations of $6.0 mln to $7.0 mln in 2026

Result Drivers

MARGIN COMPRESSION - Co experienced margin compression due to record-high prime costs, particularly beef inflation and elevated discounting

COST PRESSURES - CEO highlighted efforts to combat cost pressures and improve productivity amid operational disruptions

COST-SAVING INITIATIVES - Co expects EBITDA recovery in 2026 through cost-saving initiatives and new product innovations

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
$145 mln
Q4 Net Income
-$13.40 mln
Q4 Adjusted EBITDA
-$12.30 mln
Q4 Income From Operations
-$15.70 mln


Analyst Coverage

Wall Street's median 12-month price target for Meritage Hospitality Group Inc is $20.00, about 788.9% above its January 16 closing price of $2.25

Press Release: ID:nGNX3ZKTKr

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)