Meritage Hospitality Group (MHGU)
OTHER OTC:MHGU
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MHGU Stock Chart & Stats
$4.12
$0.21(1.59%)
At close: 4:00 PM EST
$4.12
$0.21(1.59%)
Day’s Range― - ―
52-Week Range$1.34 - $13.48
Previous CloseN/A
Volume555.00
Average Volume (3M)7.04K
Market Cap
$12.02M
Enterprise Value$565.07M
Total Cash (Recent Filing)$19.25M
Total Debt (Recent Filing)$571.58M
Price to Earnings (P/E)―
Beta-0.22
Next EarningsN/A
EPS EstimateN/A
Next Dividend Ex-DateN/A
Dividend YieldN/A
Share Statistics
EPS (TTM)N/A
Shares Outstanding6,291,000
10 Day Avg. Volume16,325
30 Day Avg. Volume7,036
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.15
Price to Sales (P/S)0.02
P/FCF Ratio-0.73
Enterprise Value/Market Cap47.03
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit2.39
Enterprise Value/Ebitda94.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Bulls Say, Bears Say
Bulls Say
Healthy Gross MarginA ~39.6% gross margin indicates durable product-level economics and pricing power or effective COGS control at the restaurant level. Over 2–6 months this margin provides a base to absorb operating cost reductions or modest sales recovery, supporting a faster path back to profitability if SG&A and labor are managed.
Franchised QSR Operating ModelOperating franchised QSR units gives Meritage a repeatable, scalable operating model with established brand demand and standardized procedures. This structural model usually delivers predictable unit economics and operational leverage as same-store sales recover, enabling sustained cash flow improvements once cost control and throughput stabilize.
Positive Operating Cash Flow (small)Having positive operating cash flow, even if modest, shows core restaurant operations currently generate cash rather than being purely cash-consuming. Structurally this provides a foundation to prioritize deleveraging or targeted investments; improvements in sales mix or cost discipline can convert modest OCF into sustainably stronger internal funding over months.
Bears Say
Very High And Rising LeverageDebt-to-equity near 6.5x sharply limits financial flexibility and increases fixed interest burdens. Over the next several months this structural leverage heightens refinancing and covenant risks, reduces ability to invest in operations, and magnifies earnings volatility from modest revenue swings, making recovery more difficult without deleveraging.
Material Negative Free Cash FlowSustained negative FCF of roughly -$16.4M means the company requires external financing to fund capex and debt service. Structurally this elevates refinancing risk, constrains strategic options, and forces trade-offs between short-term liquidity and long-term investments, undermining sustainable recovery unless cash generation materially improves.
Deteriorated Profitability And Declining RevenueA revenue decline combined with negative operating and net margins signals structural pressure from elevated operating costs, occupancy or labor, and weaker demand. Over months this trend erodes equity, reduces reinvestment capacity, and makes turning to sustainable profitability more challenging absent durable revenue growth or meaningful cost-structure change.
Meritage Hospitality Group News
MHGU FAQ
What was Meritage Hospitality Group’s price range in the past 12 months?
Meritage Hospitality Group lowest stock price was $1.34 and its highest was $13.48 in the past 12 months.
What is Meritage Hospitality Group’s market cap?
Meritage Hospitality Group’s market cap is $12.02M.
When is Meritage Hospitality Group’s upcoming earnings report date?
The company’s upcoming earnings report date is not yet available.
How were Meritage Hospitality Group’s earnings last quarter?
Currently, no data Available
Is Meritage Hospitality Group overvalued?
According to Wall Street analysts Meritage Hospitality Group’s price is currently Overvalued.
Does Meritage Hospitality Group pay dividends?
Meritage Hospitality Group pays a Notavailable dividend of $0.06 which represents an annual dividend yield of N/A. See more information on Meritage Hospitality Group dividends here
What is Meritage Hospitality Group’s EPS estimate?
Meritage Hospitality Group’s EPS estimate for its next earnings report is not yet available.
How many shares outstanding does Meritage Hospitality Group have?
Meritage Hospitality Group has 6,291,000 shares outstanding.
What happened to Meritage Hospitality Group’s price movement after its last earnings report?
Currently, no data Available
Which hedge fund is a major shareholder of Meritage Hospitality Group?
Currently, no hedge funds are holding shares in MHGU
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Company Description
Meritage Hospitality Group
Meritage Hospitality Group Inc. operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Morning Belle, Stan's Tacos, Freighters Eatery & Taproom, and Twisted Roosters brand names. As of January 2, 2022, it operated 337 restaurants in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was incorporated in 1986 and is headquartered in Grand Rapids, Michigan.
Technical Analysis
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