Meritage Announced 2025 Preliminary Unaudited Results; 2026 Outlook: Sales and Margin Recovery
Globenewswire·2026-01-19 21:45

Financial Performance - The company reported sales of $617.7 million for the fiscal year 2025, a decrease from $668.8 million in the previous year [8] - The loss from operations was $(22.9) million compared to a profit of $13.3 million last year, which included one-time charges of $13.7 million related to pre-opening and closure costs of 21 underperforming restaurants [8] - Net earnings were $(26.3) million, down from $8.0 million in the previous year [8] - Consolidated EBITDA was $(6.8) million, a significant decline from $42.4 million last year [8] Fourth Quarter Highlights - Sales for the fourth quarter were $145.0 million, down from $168.7 million for the same period last year [8] - The loss from operations for the fourth quarter was $(15.7) million compared to $(2.3) million in the same quarter last year, including one-time charges of $10.6 million [8] - Net earnings for the fourth quarter were $(13.4) million, compared to a profit of $5.2 million in the previous year [8] - Consolidated EBITDA for the fourth quarter was $(12.3) million, down from $13.7 million last year [8] Operational Insights - The company ended the year with 365 restaurants across 15 states, including the Morning Belle concept, which achieved an 8.7% increase in same restaurant sales in 2025 [5] - The company anticipates substantial EBITDA recovery in 2026 due to cost-saving initiatives and new product innovations [4] - The company is focusing on general and administrative cost reductions and operational efficiencies to improve overall economics and customer experience [5] Future Outlook - The initial fiscal 2026 outlook suggests a margin recovery story, with strategic priorities aimed at leveraging cost savings and returning to normalized margins [6] - The company expects sales in the range of $610 million to $620 million, with earnings from operations projected between $6.0 million and $7.0 million, and EBITDA expected to be between $18.0 million and $20.0 million [9]