Meritage Announces Cash Dividend of $0.05 Per Common Share; Opens
48th Wendy's Restaurant
GRAND RAPIDS, Mich., Dec. 16 /PRNewswire-FirstCall/ -- Meritage Hospitality
Group Inc. (AMEX:MHG), the nation's only publicly traded Wendy's franchisee and
the nation's first O'Charley's franchisee, today announced that it has declared
a cash dividend of $0.05 per outstanding common share. The dividend is payable
on January 19, 2005, to shareholders of record on December 28, 2004.
"This dividend demonstrates Meritage's continuing commitment to create
long-term value for our shareholders by maximizing shareholder returns, and our
confidence in the Company's performance which has been driven by the strategic
growth plan we implemented over the past five years. Our improved cash
position, combined with sales of surplus real estate, have created an opportune
time for the Company to declare a cash dividend, while maintaining our ability
to support our strategic growth plans involving the development of O'Charley's
and Wendy's restaurants. Returning cash to our investors is an important
objective in our long-term strategy to enhance shareholder returns, broaden our
base of investors and improve the trading liquidity of our stock. The Company's
Board of Directors will consider additional dividends in the future," stated
Robert E. Schermer, Jr., the Company's CEO.
Separately, the Company announced the opening of its 48th Wendy's restaurant
located on Broadmoor Avenue in Caledonia, Michigan.
Meritage is one of the nation's premier franchise operators. The Company is
the only publicly held Wendy's franchisee, operating 48 "Wendy's Old Fashioned
Hamburgers" restaurants throughout Western and Southern Michigan and serving
more than nine million customers annually. Meritage has been one of the
fastest growing Wendy's franchisees within the Wendy's franchise system during
the past four years. Meritage is also the nation's first O'Charley's
franchisee giving Meritage the exclusive rights to develop O'Charley's
restaurants in the State of Michigan. Meritage opened its first O'Charley's
restaurant August 2004 in Grand Rapids, Michigan.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995 Certain statements contained in this news release that are not historical facts
constitute forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995, and are intended to be covered by the
safe harbors created by that Act. Forward-looking statements may be identified
by words such as "estimates," "anticipates," "projects," "plans," "expects,"
"believes," "should," and similar expressions, and by the context in which they
are used. Such statements are based only upon current expectations of the
Company. Any forward-looking statement speaks only as of the date made.
Reliance should not be placed on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements to differ materially from
those expressed or implied. Meritage undertakes no obligation to update any
forward-looking statements to reflect events or circumstances after the date on
which they are made.
Statements concerning expected financial performance, business strategies and
action which Meritage intends to pursue to achieve its strategic objectives,
constitute forward-looking information. Implementation of these strategies and
achievement of such financial performance are subject to numerous conditions,
uncertainties and risk factors, which could cause actual performance to differ
materially from the forward-looking statements. These include, without
limitation: competition; changes in the national or local economy; changes in
consumer tastes and eating habits; concerns about the nutritional quality of
our restaurant menu items; concerns about consumption of beef or other menu
items due to diseases including E. coli, hepatitis, and mad cow; promotions and
price discounting by competitors; severe weather; changes in travel patterns;
road construction; demographic trends; the cost of food, labor and energy; the
availability and cost of suitable restaurant sites; delays in scheduled
restaurant openings; the ability to finance expansion; interest rates;
insurance costs; the availability of adequate managers and hourly-paid
employees; directives issued by the franchisor regarding operations and menu
pricing; the general reputation of Meritage's and its franchisors' restaurants;
legal claims; and the recurring need for renovation and capital improvements.
In addition, Meritage's expansion into the casual dining restaurant segment as
a franchisee of O'Charley's will subject Meritage to additional risks
including, without limitation, unanticipated expenses or difficulties in
securing market acceptance of the O'Charley's restaurant brand, the ability of
our management and infrastructure to successfully implement the O'Charley's
development plan in Michigan, and our limited experience in the casual dining
segment. Also, Meritage is subject to extensive government regulations
relating to, among other things, zoning, public health, sanitation, alcoholic
beverage control, environment, food preparation, minimum and overtime wages and
tips, employment of minors, citizenship requirements, working conditions, and
the operation of its restaurants. Because Meritage's operations are
concentrated in certain areas of Michigan, a marked decline in Michigan's
economy, or in the local economies where our restaurants are located, could
adversely affect our operations. DATASOURCE: Meritage Hospitality Group Inc.
CONTACT: Robert E. Schermer, Jr. of Meritage Hospitality Group Inc., +1-616-776-2600 Web site: http://www.meritagehospitality.com/
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