Nov 11 (Reuters) -

Overview

* Meritage Q3 sales fell 6.2% yr/yr

* Q3 net loss of $9 mln, compared to loss of $1.8 mln a year ago

* Company undergoing restructuring amid high costs and decreased transactions

Outlook

* Meritage forecasts Wendy's sales and margin improvements in 2026

* Project Fresh aims to enhance Wendy's performance and customer experience

Result Drivers

* HIGH COSTS - Record prime costs in food, paper, and labor affected Q3 results, per CEO Robert E. Schermer, Jr.

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales $154.60 $173.10

mln mln (1

Analyst)

Q3 Net -$9 mln

Income

Q3 -$4.30 $14.70

Adjusted mln mln (1

EBITDA Analyst)

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for Meritage Hospitality Group Inc ( MHGU ) is $20.00, about 68.9% above its November 7 closing price of $6.22

Press Release:

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(Reporting by Aby Jose Koilparambil in Bengaluru)