US-based restaurant operator Meritage Hospitality Group has reported net earnings of $1.6m for the first quarter of 2024 compared to a $1.5m loss in 2023.
For the first quarter ended 31 March 2024, the company’s earnings from operations rose 306.9% to $3.9m compared to $0.9m for the same period a year previously.
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In the latest quarter, its sales grew by 3.3% to $162.8m from $157.7m in the same period of 2023.
Its consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) during the period also increased by 82.4% to $9.9m compared to $5.4m for the same period of the previous year.
Meritage is aiming for strong earnings growth, with sales expected to increase by 5% to 10% in the remainder of 2024.
The company is targeting a net income growth of between 145% and 155% and a 65% to 75% increase in earnings from operations.
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By GlobalDataIt has set an EBITDA growth target of 30% to 40% for the year.
The company is actively enhancing its US restaurant portfolio through renovations and building new restaurants under its current development agreements.
Meritage CEO Robert Schermer stated: “Company earnings from operations increased significantly in the first quarter compared to last year, driven by profitable value menu sales and decreased inflation in food, paper and labour.
“Profit means growth in our Wendy’s business, and we are excited about the new Wendy’s leadership vision for digital investments and technology to support restaurant margin expansion.”
