Meritage Appoints Wolverine World Wide Chief Financial Officer to
Board of Directors
GRAND RAPIDS, Mich., Aug. 19 /PRNewswire-FirstCall/ -- Meritage Hospitality
Group Inc. (AMEX:MHG), the nation's only publicly traded Wendy's franchisee and
the first O'Charley's franchisee, today announced the appointment of Stephen L. Gulis, Jr. to the Company's Board of Directors and Audit Committee, effective
September 1, 2004. Mr. Gulis is currently the Executive Vice President, Chief
Financial Officer and Treasurer of Wolverine World Wide, Inc. (NYSE:WWW), a
West Michigan-based international manufacturer and retail marketer of branded
and licensed footwear and performance leathers.
Commenting on the announcement, Robert E. Schermer, Jr., Meritage's Chief
Executive Officer, stated "We are delighted and honored that Steve is joining
the Meritage Board. Steve brings substantial public company experience in his
current position as Chief Financial Officer of Wolverine World Wide, a highly
regarded publicly-held growth company with $889 million in annual sales. Steve's diversified financial background and experience in creating shareholder
value will make him a valuable asset to our Board and its Audit Committee, and
should prove invaluable at this juncture of our strategic development plans as
we continue to grow Meritage towards a goal of $100 million in revenues by
2007." O'Charley's (traded as CHUX on Nasdaq) is a leading regional high quality food
concept in the casual dining restaurant category. Earlier this year, Meritage
entered into the nation's first development agreement with O'Charley's, giving
Meritage the exclusive right to develop O'Charley's restaurants in the State of
Michigan. The Company is scheduled to open its first O'Charley's restaurant on
August 24, 2004, in Grand Rapids, Michigan.
Meritage currently operates 47 "Wendy's Old Fashioned Hamburgers" restaurants
throughout Western and Southern Michigan serving more than nine million
customers annually. The Company has been one of the fastest growing
franchisees within the Wendy's franchise system for the past three years. Wendy's (traded as WEN on NYSE) 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; 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., CEO of Meritage Hospitality Group Inc., +1-616-776-2600 Web site: http://www.meritagehospitality.com/
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