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GRAND RAPIDS, Mich., Aug. 06, 2019 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, today announced it has entered into two independent definitive asset purchase agreements to acquire a total of 10 Wendy’s restaurants located in Georgia and Texas.
The pending transactions are subject to customary due diligence and standard approvals. The two transactions are scheduled to close during the third quarter of 2019, adding approximate $17.9 million of sales.
The Company also recently reported it entered into an agreement with Wendy’s to develop 40 new Wendy’s restaurants over the next five years. Under terms of the Development Agreement the Company will develop 40 new Wendy’s restaurants by the end of 2024 and receive significant economic incentives provided under the Groundbreaking Incentive Program, which includes royalty and national marketing fee relief. The development and incentive programs are subject to the Company fulfilling its Joint Capital Plan to re-image 10% of its existing restaurants each year and customary Wendy’s real estate approvals. The Company plans to invest approximately $100.0 million in the development of the 40 Wendy’s restaurants through a combination of cash on hand and development credit facilities.
“Acquisitions, renovations and new restaurant openings are integral parts of our business model, as we expand in designated market areas. We remain a leader of restaurant development within the system and are currently on pace for a record number of Wendy’s new builds in 2019 and 2020”, stated Meritage CEO, Robert Schermer, Jr.
Meritage continues to distinguish itself as a leader and innovator in the quick service restaurant segment, striving for best in class results through a performance based culture committed to operational excellence, strategic acquisitions and real estate development.
Meritage Hospitality Group is one of the nation’s premier restaurant operators, with 321 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 10,000 employees. The Company’s public filings can be viewed at www.otcmarkets.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.
Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.