Meritage Hospitality Q2 posts net loss on restructuring, closing costs

Overview

• US Wendy's franchisee's Q2 sales fell yr/yr due to 40 fewer restaurants

• Q2 net loss driven by $13.8 mln in one-time restructuring and closing costs

• Company expects 2027 recovery as restructuring and closures strengthen operations

Outlook

• Meritage forecasts 2026 full-year sales between $520 mln and $530 mln

• Company expects 2026 restaurant operating income of $30 mln to $40 mln

• Meritage anticipates significant recovery in 2027 after restructuring and closures

Result Drivers

• FEWER RESTAURANTS - Q2 sales decline attributed to operating about 40 fewer restaurants than last year

• RESTRUCTURING COSTS - Net loss driven by $13.8 mln in one-time restructuring and closing costs

• CONSUMER HEADWINDS - Co cited geopolitical uncertainty, reduced marketing, and higher gasoline prices as factors impacting consumers

Company press release: ID:nGNXmlV2j

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)