Meritage Hospitality Group (MHGU) Fair Value & Analysis
Consumer Cyclical · US · Market cap $16.4M
Meritage Hospitality Group
MHGU · US
Fair value as of: Jul 19, 2026
From 4 valuation models · updated yesterday
Fair value updated Jul 19, 2026, revised from $58.26 to $4.96 (−91.5%) since Jun 24, 2026. Share price −0.4% over the past month.
Price vs Fair Value (12 months)
12‑month range $1.60 – $13.00 · fair‑value band $2.49 – $7.52 · the $2.30 price screens below the $4.96 fair value. As of Jul 19, 2026.
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Meritage Hospitality Group (MHGU) currently trades at $2.30, while our model-based Fair Value estimate is $4.96, implying the stock looks roughly 115.7% undervalued today. We read business quality at 30/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.
Over the trailing twelve months, Meritage Hospitality Group generated revenue of $618M at a net margin of -5.1%. Revenue grew 5.2% year over year. It earns a return on equity of -27.7%. Net debt stands at $159M. Fundamentals as of Jul 19, 2026
Our scenario range runs from $2.49 (bear case) to $7.52 (bull case); at $2.30, the current price sits below that range. For context, the median of 10 Consumer Cyclical peers we cover trades at -44% fair-value upside, at 116%, MHGU screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jul 19, 2026. TTM = trailing twelve months.
About the company
Meritage Hospitality Group Inc., together with its subsidiaries, operates quick-service and casual dining restaurants. The company operates restaurants under the Wendy's, Morning Belle, and Blue Porch Bar & Grill brand names in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia. It is also involved in franchising activities. The company was formerly known as Thomas Edison Inns, Inc. and changed its name to Meritage Hospitality Group Inc. in May 1996. Meritage Hospitality Group Inc. was founded in 1969 and is based in Grand Rapids, Michigan.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Meritage Hospitality Group reported revenue of $618M in FY2025 versus $577M in FY2021, a compound +1.7%/yr. Reported net income was −$31.7M in FY2025.
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| Darden Restaurants, Inc D1RI34 | R$255.98 | R$33.46 | -87% |
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| Texas Roadhouse, Inc TXRH | $164.24 | $107.31 | -35% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.