Meritage Appoints Two New Officer Positions
GRAND RAPIDS, Mich., May 20 /PRNewswire-FirstCall/ -- Meritage Hospitality
Group Inc. (AMEX:MHG), the nation's premier franchise operator and only
publicly traded Wendy's franchisee and O'Charley's franchisee, announced that
the Board of Directors has appointed James R. Saalfeld to the newly created
position of Chief Administrative Officer, and Roger L. Zingle the newly created
position of Chief Operating Officer, effective May 17, 2005.
Commenting on the appointments, Robert E. Schermer, Jr., Meritage's Chief
Executive Officer, stated, "We are delighted that both Jim and Roger have
accepted these additional responsibilities. We are entering a phase of long-
term new unit growth and I believe it is imperative that we continue to build a
skilled executive management team that can help us achieve our strategic goals. Both Jim and Roger have demonstrated their commitment and ability to achieve
results for the Company. The Meritage executive management team remains
committed to promoting a culture where management, through its ownership in the
business, maintains the same ultimate goal of all shareholders." Mr. Saalfeld
has also served as Meritage's Vice President, General Counsel and Corporate
Secretary since 1996. Mr. Zingle has served as the President and Chief
Operating Officer of Meritage subsidiary, O'Charley's of Michigan, since 2004,
and is a 25-year veteran of the restaurant industry holding executive positions
at Big Boy International, C.A. Muer Corporation (Charley's Crab) and T.G.I. Friday's, Inc.
Meritage, which reported 26 consecutive quarters of sales growth, is the
nation's premier franchise operator through its ownership and operation of the
two "best of class" franchise restaurant brands in O'Charley's and Wendy's. Last year, Meritage became the nation's first O'Charley's franchisee. O'Charley's is a leading regional high quality food concept in the casual
dining restaurant category. Meritage is scheduled to open its fourth
O'Charley's restaurant in August 2005 in Holland, Michigan.
Meritage also operates 48 "Wendy's Old Fashioned Hamburgers" restaurants
serving more than nine million customers annually. Meritage has been one of
the fastest growing franchisees within the Wendy's franchise system during the
past five years. Wendy's International is the leading national, high-quality
hamburger concept in the quick-service restaurant category. The Wendy's
franchise system is the third largest quick-service restaurant hamburger chain
in the world with more than 6,375 restaurants and system-wide sales in excess
of $7.1 billion.
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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