GRAND RAPIDS, Mich., Nov. 2 /PRNewswire-FirstCall/ -- Meritage Hospitality Group Inc. (AMEX:MHG), the nation's only publicly traded Wendy's franchisee and O'Charley's franchisee, today announced plans to expand its restaurant base into a national restaurant franchise platform. The objective is to increase shareholder value and liquidity by leveraging and expanding our brands and geographical presence through both organic growth and strategic acquisitions. To accomplish this plan, Meritage plans to explore the following: * acquisitions of, or partnerships with, multi-unit franchisees located in geographically diverse U.S. markets with solid demographic profiles and population growth, and whose ownership base may desire business expansion capital or even an exit strategy; * installation of flexible, efficient and scalable internal systems in multiple departments including operations, technology, business processes and construction; * identifying private equity partners who will participate in acquisitions or joint ventures and provide the financial flexibility required for continued growth; and * continued concentration on high quality "best of class" franchise brands in the quick service, fast casual and casual dining segments.
Robert E. Schermer, Jr., Meritage's CEO, stated, "Over the past several years, we have developed a highly capable management team that will enable Meritage to expand into a national franchise platform. Our executive management team and board of directors share a passion for operational excellence which is demonstrated by Meritage's solid track record of building out markets and operating our restaurants at the highest system-wide franchise standards. I believe we are prepared to expand our platform nationally while continuing to achieve operational excellence." Meritage is one of the nation's premier franchise operators currently operating 52 restaurants. Meritage operates 48 "Wendy's Old Fashioned Hamburgers" restaurants throughout Western and Southern Michigan, serving more than nine million customers annually. Meritage has been one of the fastest growing Wendy's franchisees over the past several years. Meritage is also the nation's first O'Charley's franchisee with four O'Charley's restaurants in operation and additional restaurants under development. Meritage holds the right to develop O'Charley's restaurants throughout 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," "intends," "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 subjects 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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