|Shares Out. (in M):||6||P/E||9||7|
|Market Cap (in $M):||119||P/FCF||5.5||8.7|
|Net Debt (in $M):||81||EBIT||13||17|
Meritage Hospitality Group (MHGU) is a $119mm mkt cap franchisee of Wendy's restaurants and at the current levels offers a better than 16% IRR over the next 3 years or a 58% total return. Insiders own more than 65% of the company. This is a small and illiquid idea for personal accounts and/or small funds.
The company buys restaurants from retiring franchisees, implements their operating platform and re-images the restaurants. This results in an increase in sales and ebitda.