Meritage Hospitality Group, a US-based restaurant operator, has disclosed a net earnings of $1.6 million for the first quarter of 2024, contrasting sharply with the $1.5 million loss recorded in 2023.
For the quarter ended on March 31, 2024, the company witnessed a significant surge in operational earnings, with a remarkable 306.9% increase to $3.9 million, compared to $0.9 million for the same period last year.
For the most recent quarter, sales experienced a 3.3% growth, reaching $162.8 million compared to $157.7 million in the corresponding period of 2023.
During the same period, the company’s consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 82.4% to $9.9 million, up from $5.4 million in the prior year’s corresponding period.
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Meritage is aiming for robust earnings growth, with sales expected to increase by 5% to 10% in the remainder of 2024.
The company aims for a net income surge ranging between 145% and 155%, along with a 65% to 75% boost in earnings from operations.
For the year, it has established an EBITDA growth objective of 30% to 40%.
The company is actively bolstering its portfolio of US restaurants by renovating existing ones and constructing new establishments as per its current development agreements.
Meritage CEO Robert Schermer noted, “Earnings from operations for the company surged notably in the first quarter compared to the previous year, propelled by profitable value menu sales and reduced inflation in food, paper, and labor costs.”
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