Overview & OutlookMicroCap Conference

October 2, 2018

Meritage is a leader in the quick service restaurant segment, delivering best-in-class results through

a performance based Acquisition & Real Estate Development Model

10/8/2018 2

Certain information in this Meritage presentation, particularly information regarding future economic performance and

finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors

set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company’s actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the

Company’s Safe Harbor Statement at http://www.meritagehospitality.com

SAFE HARBOR STATEMENT

Source: The NPD Group / CREST

Why Invest in Quick Service Restaurants? U.S. Total Restaurant Industry Sales for 2017: $536.8 billion.

Company Overview

Meritage is one of the largest Wendy’s franchisees in the U.S. 311 restaurants located across 16 states $453.7M Sales 2018E $40.8M EBITDA 2018E

Best-in-class operator with strong bottom-line performance Historical operations performance Strong financial value-add in acquired restaurants Proficient restaurant real estate developer

Well positioned for continued expansion and profitable growth Completed 24 acquisitions, integrating 254 restaurants Renovated 40% of system by year end, forecast 60% by 2020 Unique scalable operating platform in place for future growth

Franchise Acquisition

People and Systems

Integration

Restaurant Renovations

New RestaurantDevelopment

Market Buildout

Acquisition & Real Estate Development Model

Michigan 61 restaurants

Ohio 15 restaurants

Oklahoma 20 restaurants

Florida 52 restaurants

Virginia 12 restaurants

North Carolina 2 restaurants

South Carolina 1 restaurant

311 Locations

Georgia 37 restaurants

Tennessee Arkansas,Missouri, Mississippi

55 restaurants

2018 U.S. Restaurant Operations

Indiana 12 restaurantsConnecticutMassachusetts 39 restaurants

Texas 5 restaurants

The

Bran

d Tr

ansf

orm

atio

n

Brand 94% Operated by FranchiseesToday’s Average U.S. Franchisee;

68 years old Owns 21 restaurants Obtaining New 20 Year Franchise

Agreement require significant capital investment and commitment to long-term growth

North America Wendy’s Restaurant Locations

First Generation Franchisee RetirementIt’s Still Middle Innings of the Cycle

• Wendy’s mandating capital investment in restaurants• 2017 Average Annual Sales Per North America Restaurant (System)

$1.61 Million• Total U.S. Franchise Restaurants 6,134 (Q2 2018)• Total U.S Franchisees 262 (Q2 2018)

25 Wendy’s Acquisitions Completed

254 Restaurants Integrated

Our Wendy’s story isn’t about big operators eating small operators, its about

“Innovators adding-value verses the Incumbents”

Date of Purchase TTM May 2018 TTM

$24,838

$30,576

Stor

e-Le

vel E

BITD

A

Acquisitions and Value-Added in RestaurantsPerformance of Acquired Restaurants

> 12 Months 196 Restaurants($ in 000’s)

+23.1%

196 RestaurantsAcquired

187 RestaurantsToday

Closed 9

Operating SystemsAccounting Systems

Cloud-based HR SystemsIT Department & Certifications

Scalable Operating Platform

Best way to improve acquired restaurant ? Renovate it.

Remodel Start Finish

Top Wendy’s System Real Estate Developer

201826 New & Renovated Restaurants

15% of new-builds for Wendy’s in U.S.

12 New & Re-locations4 Scrape & Rebuilds

10 Refreshes

New-Build

Remodel

Remodel-lite

New-Build Economics

Land $722,000Building $1,225,000Equipment $400,000Total $2,347,000

Store-Level EBITDA: $354,000

Unleveraged Cash-on-CashReturn: 15.1%

Leading Performance Indicator

2013 2014 2015 2016 2017

$8.4 $8.6

$17.1 $18.5

$26.4

Consolidated EBITDA($ in millions)

Prices as of 8/2/18

MHGU

5 Year Performance

2013 2014 2015 2016 2017

$138 $160

$210 $236

$312.7Sales

NASDAQ

Sales +40% - 50%Income from Operations +55% - 65%

Net Earnings +45% - 55%EBITDA +35% - 45%

Leading Performance Indicator

2018 Financial OutlookFull-year financial targets

Year over year percentage change

Year-to-Date Results(6 Months Ending July 1)

Item6 Months

2017 ($ in millions)

6 Months2018

($ in millions)

% Change

Sales $140.7M $216.6 +53.9%

Earnings from Operations $8.8M $13.1M +48.5%

Net Earnings $4.9M $7.1M +45.4%

EBITDA $14.0M $19.1M +37.5%

Number of Restaurants 249 311 +27.3%

2018 Financial Estimates($ in millions)

SALES

2011 2012 2013 2014 2015 2016 2017E 2018E

$5.0 $5.3 $8.4 $8.6

$17.1$18.5

$26.4

Consolidated EBITDA

2011 2012 2013 2014 2015 2016 2017E 2018E

$92 $99

$138 $160

$210 $236

$312.7

$453.7$40.8

Estim

ate

Estim

ate

+54%+45%

Keeping Track of Promises Dividend Growth Commensurate with Earnings Growth

2012 2013 2014 2015 2016 2017 2018E

$0.01 $0.02

$0.03

$0.06 $0.07

$0.10

Annual CashDividend Payout

Estim

ate

2011 2012 2013 2014 2015 2016 2017 2018E

$5.0 $5.3 $8.4 $8.6

$17.1$18.5

$26.7

Consolidated EBITDA($in millions)

Estim

ate

$40.8 $0.20

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E

5373 73

89

112119

142

181

253

320

351

378

420

166

Current 5-Year Plan

Num

ber o

f Res

taur

ants

Restaurants Operating At Year-End

2021420 Restaurants

5-Year Plan

$700+Million

Sales

+39%5-Year

Annual Growth Rate

$70+Million

EBITDA

+45%5-Year

Annual Growth Rate

2021 Financial TargetsAmbitious and Achievable

Key Points

Competent, Shareholder-Oriented Management Team Nations premier franchise Operator & Developer with a successful track record of profitable growth, driving share value and dividend distributions

Predictable Cash Flow Business History of stable cash flow year over year in acquired restaurants, value-add generating strong return on equity

Sustainable Competitive Advantages Wendy’s global top-tier brand with strong brand recognition and attributesMeritage best-in-class operator, on track to deliver transformational scale of 420 restaurants, EBITDA growth driven by a combination of accretive franchise acquisitions, renovations and new restaurant development on unique scalable operating platform

Common Sense, Cost Effective StructureOTCQX traded, FINRA Compliant - Reporting Standard saves time, energy and costs – providing additional capital for allocation into restaurant investments and shareholder distributions

Uncommon HospitalityWe go above and beyond by treating

our guests, teammates and communities like friends and family

Inspired by Opportunity,Success through Service.

We Love What We do.

Symbol: MHGU

Thank you for your time.