Meritage Hospitality Reports $133.6 Million in Q3 Sales and a $7.7 Million Net Loss

Meritage Hospitality Group Inc. reported third-quarter 2026 sales of $133.6 million, down from $154.6 million a year earlier, and a net loss of $7.7 million versus $9.0 million. The Grand Rapids, Michigan-based Wendy's franchisee released the results on November 13, 2026, according to GlobeNewswire.

Meritage's Third-Quarter Loss and Store Count

Meritage Hospitality Group Inc. operates Wendy's restaurants and its own Morning Belle brunch concept. The quarter ended September 27, 2026, with about 70 fewer stores in operation than a year earlier, the company said.

Net loss from operations was $6.6 million, the same as a year earlier, and included $2.4 million in one-time professional fees. Consolidated EBITDA, a non-GAAP measure, was a loss of $2.9 million compared with a loss of $4.3 million a year earlier.

For the nine months ended September 27, 2026, sales were $407.2 million compared with $472.7 million a year earlier. The year-to-date net loss was $30.8 million versus $12.9 million, and included $19.6 million in one-time professional fees and closing and disposition costs.

"The Company is undertaking a major restructuring of its business and improving store-level profitability, and we believe in the strength of the brand," CEO Robert E. Schermer, Jr. said in the release. He said Wendy's CEO Bob Wright recently announced that breakfast will become optional for franchisees, intended to bolster franchisee profitability by $200 million, and that Meritage expects the full store-level benefits in 2027.

Meritage's Restaurant Footprint and Funding History

According to akta.pro company records, Meritage runs more than 350 Wendy's locations plus 6 Morning Belle restaurants across 15 states. The records list four funding rounds, including a $2 million post-IPO equity round in May 2023 and a $5 million round in February 2019.

Meritage's Chapter 11 Filing and Board Change

Meritage filed Chapter 11 in Michigan to stay a Wendy's franchise termination, Qsrmagazine reported in October 2026, with the dispute centering on whether a September 16 notice fully terminated the agreements. Restaurant Business reported in October 2026 that Meritage closed 10 locations in its Chapter 11 bankruptcy after Wendy's objected to seven of them. Stock Titan reported in September 2026 that Michael Ruggeri resigned from the board effective August 31, 2026.

What Comes Next for Meritage

Meritage said it expects the full extent of its Wendy's portfolio actions to be realized at the store level in 2027. The company's current information under amended SEC Rule 15c2-11 is available under the stock symbol MHGUQ/Disclosures, and its website hosts its Safe Harbor Statement.