GRAND RAPIDS, Mich., Feb. 09, 2017 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX:MHGU), one of the nation’s premier restaurant operators, today announced it has entered into three independent definitive asset purchase agreements to acquire a total of 69 Wendy’s restaurants located in the Midwest and Mid-Atlantic states. The transactions are subject to customary due diligence and standard approvals. The three transactions are scheduled to be completed during the first and second quarters of 2017.
Chief Executive Officer Robert Schermer, Jr., stated, “We are inspired by the opportunity to expand our Wendy’s footprint into these new market areas. The consummation of these three transactions will represent the completion of nineteen Wendy’s acquisitions in the past eight years and are consistent with our stated investment strategy of 'profitable growth' within the Wendy’s franchise system. We intend to systematically integrate each of these Wendy’s restaurants into our unique web-based operating & accounting platform, followed by a long-term remodeling program designed to modernize the Wendy’s restaurants and enhance the guest experience. We look forward to welcoming the addition of 2,100 new employees to Meritage this spring,” added Schermer.
The Company expects the 69 restaurants to add approximately $90 million in annual sales and be accretive to earnings.
Company 2017 Outlook: Robust Sales & Earnings Growth Ahead
The Company’s initial 2017 financial targets will be updated at the end of the second quarter to reflect the impact of the acquisitions, which we anticipate will be accretive to sales and earnings growth going forward.
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 181 restaurants in operation located in Florida, Georgia, Michigan, North Carolina, South Carolina, Ohio, Oklahoma and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 6,200 employees. The Company has approximately 5.9 million (basic) common shares outstanding. The Company’s public filings can be viewed at www.otcqx.com, under the stock symbol MHGU, or 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 http://www.meritagehospitality.com.
CONTACT: Robert E. Schermer, Jr., CEO Meritage Hospitality Group Inc. (616) 776-2600
Source:Meritage Hospitality Group, Inc.