Meritage Hospitality Group Inc. (MHGU) Reports Q2 Loss, Lags Revenue Estimates

Core Insights - Meritage Hospitality Group Inc. reported a quarterly loss of $0.04 per share, significantly missing the Zacks Consensus Estimate of $0.54, and down from earnings of $0.33 per share a year ago, resulting in an earnings surprise of -107.41% [1] - The company posted revenues of $163.53 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 9.65% and down from $172.36 million year-over-year [2] - The stock has underperformed the market, losing about 14.3% since the beginning of the year compared to the S&P 500's gain of 8.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $173.1 million, and for the current fiscal year, it is $0.98 on revenues of $685.8 million [7] - The estimate revisions trend for Meritage Hospitality Group was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Retail - Restaurants industry, to which Meritage Hospitality Group belongs, is currently in the bottom 24% of over 250 Zacks industries, suggesting a challenging environment for the stock [8] - Another company in the same industry, Dave & Buster's, is expected to report quarterly earnings of $0.90 per share, reflecting a year-over-year decline of 19.6% [9]