Meritage Reports Year-End Acquisition of 19 Wendy's Restaurants and
Grand Opening of 111th Restaurant
GRAND RAPIDS, MI -- (Marketwire) -- 01/03/13 -- Meritage Hospitality
Group, Inc. (OTCQX: MHGU), one of the nation's premier restaurant
operators, today announced it has acquired two Wendy's franchised
portfolios consisting of nine Wendy's restaurants in Atlanta, GA, and
ten Wendy's restaurants in Richmond, VA. In addition, the Company has
opened a new Wendy's restaurant located on Trout River Road in
Jacksonville, FL marking its 111th restaurant in operation.
"We welcome our 500 new employees in Atlanta, Richmond and
Jacksonville to the Meritage family," stated Robert E. Schermer, Jr.,
CEO of Meritage Hospitality Group, Inc. "The strength of our
web-based operating platform, and the brand reimaging and
modernization of Wendy's restaurants remains a hallmark of our growth
strategy and workforce opportunities," added Mr. Schermer.
The Company plans to implement major capital improvements in its
acquired Wendy's locations, beginning with the installation of the
Company's comprehensive restaurant back-of-house operating and
accounting systems, along with "Image Activation" and other key brand
initiatives designed to contemporize both the interior and exterior
The transactions represent the Company's completion of seven Wendy's
acquisitions in recent years. The acquisitions were financed
utilizing an acquisition credit facility with First Franchise Capital
Corporation, the Company's primary Wendy's restaurant lender. The
combination of the acquisitions and newly opened restaurant will add
approximately $27.0 million in annual sales and is forecasted to be
materially accretive to EBITDA and net earnings per common share in
Meritage continues to invest in the long-term fundamentals of the
Wendy's restaurant brand and remains committed to the installation of
its web-based restaurant operating platform. The Company currently
operates 111 restaurants in six states including; Atlanta, Georgia;
Grand Rapids, Michigan; Jacksonville, Florida; North Carolina; South
Carolina and Richmond, VA.
The Company is headquartered in Grand Rapids, MI and employs a
workforce of approximately 3,500 people. The Company's public filings
can be v
iewed at www.otcqx.com under the stock symbol MHGU, or at the
Company's website, www.meritagehospitality.com.
SAFE HARBOR STATEMENT
Certain information in this news release,
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
Robert E. Schermer, Jr.
Meritage Hospitality Group Inc.
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