Meritage Q2 Sales Drop 8%, Posts $13.6M Loss on Restructuring; Guides FY Revenue $520-$530M
MHGU sits 72% above its 52-week low of $1.337.
Summary
Meritage reported Q2 sales of $150M, down 8% from last year's $163.5M, which included ~40 more restaurants. Net loss widened to $13.6M from a $0.3M profit, driven by $13.8M in one-time restructuring and closing costs. Adjusted EBITDA fell to $2.8M from $8.2M. Six-month sales were $273.6M vs $318.1M, with a net loss of $23.1M. The company reaffirmed improving sales trends and guided full-year sales of $520-$530M and restaurant operating income of $30-$40M. This follows a Q1 net loss of $9.6M and negative adjusted EBITDA, indicating continued operational strain. The CEO cited headwinds from geopolitical uncertainty and reduced marketing but forecast a significant recovery in 2027 from cost actions. The results highlight ongoing challenges in a small-cap restaurant operator with a market cap around $14.5M.
At the time of this announcement, MHGU was trading at $2.30 on OTC in the Trade & Services sector, with a market capitalization of approximately $14.5M. The 52-week trading range was $1.34 to $15.25. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.