Added to YB: 2025-04-22
Pitch date: 2025-03-02
MHGU [bullish]
Meritage Hospitality Group Inc.
-78.61%
current return
Author Info
No bio for this author
Company Info
Meritage Hospitality Group Inc., together with its subsidiaries, operates quick-service and casual dining restaurants.
Market Cap
$15.3M
Pitch Price
$14.36
Price Target
26.00 (+746%)
Dividend
2.63%
EV/EBITDA
7.27
P/E
3.03
EV/Sales
0.89
Sector
Hotels, Restaurants and Leisure
Category
special_situation
Meritage Hospitality Group Inc. - $MHGU
MHGU: 2nd largest Wendy's franchisee (376 stores) at 6.5x 2025E EBITDA, 0.5x EV/sales, $880K/store vs $925K in recent Carrols deal. Aging insiders (68% ownership) seek 'liquidity event'. Prime costs normalizing to 60%. Wendy's 400-unit cap limits growth after Taco John's expansion failed (53% comp sales decline). $26 PT (75% upside).
Read full article (11 min)