SOURCE: Meritage Hospitality Group, Inc.

Meritage Hospitality Group, Inc.

May 21, 2014 11:53 ET

Meritage Hospitality Announces Special Dividend Increase; Results of 2014 Annual Shareholder Meeting

GRAND RAPIDS, MI--(Marketwired - May 21, 2014) - Meritage Hospitality Group, Inc. (OTCQX: MHGU), one of the nation's premier restaurant operators, today announced that the Company's Board of Directors approved a special dividend of $.015 per share at the May 20, 2014, Board of Directors Meeting. The dividend is payable on July 1, 2014, to shareholders of record on June 16, 2014.

"The special dividend represents a 50% increase over last year's dividend from the same period and is consistent with the Company's philosophy to reward shareholders using cash dividends commensurate with earnings growth. Our goal continues to be focused on creating long-term EBITDA growth and enterprise value, generating a highly rewarding investment for all of our shareholders. We intend to accomplish this through continued new restaurant development and major capital reinvestment in the Wendy's restaurant system," stated CEO, Robert E. Schermer, Jr.

At the Annual Shareholder Meeting, the Company's shareholders elected six directors: James P. Bishop, Duane F. Kluting, Joseph L. Maggini, Robert E. Schermer, Sr., Robert E. Schermer, Jr., and Peter D. Wierenga. Each director will serve until the 2015 Annual Shareholders' Meeting.

Also discussed at the Annual Shareholder Meeting:

  • 2014 Financial and Special Dividend Targets
    • Sales growth of 10% to 15%
    • EBITDA growth of 30% to 35%
    • Net Earnings growth of 50% to 55%
    • Special Dividend growth of 50%
  • The Company detailed its multi-year capital expenditure plan for re-imaging, building new Wendy's restaurants and opening new casual dining restaurants. The Wendy's system remains focused on long-term brand upgrades and facility reinvestments termed "image activation". Image activation is designed to enhance the guest experience in Wendy's restaurants, including interior and exterior ambiance, new quality food products and compelling guest service standards.

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.