Meritage Hospitality initiated with an Outperform at Northland

Northland initiated coverage of Meritage Hospitality with an Outperform rating and $24 price target. Meritage is a 25-year Wendy’s franchisee and the largest franchise owner with 375 Wendy’s locations in operation, the analyst tells investors. The company has “a strong track record of achieving profitable growth” and the firm expects Meritage to continue to see attractive growth from newly developed Wendy’s locations, exclusive development rights for Taco John’s, and the launch of its in-house breakfast-brunch brand, the analyst added.