Meritage Hospitality Group Inc. announced it has entered into a Development Agreement with Wendy's under the Groundbreaking Incentive Program to develop 40 new Wendy's restaurants. Under terms of the Development Agreement the Company will develop 40 new Wendy's restaurants by the end of 2024 and receive significant economic incentives provided under the Groundbreaking Incentive Program, which includes royalty and national marketing fee relief. The development and incentive programs are subject to the Company fulfilling its Joint Capital Plan to re-image 10% of its existing restaurants each year and customary Wendy's real estate approvals. The Company plans to invest approximately $100.0 million in the development of the 40 Wendy's restaurants through a combination of cash on hand and development credit facilities.

The company reported strong earnings growth in the first quarter and believes the sales and earnings growth will accelerate in 2020, driven by new development and reimaged restaurant locations.