Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation’s premier restaurant operators, announced it has completed the acquisition of 9 Wendy’s restaurants located in Tallahassee, FL.
The Wendy’s restaurants were acquired from a franchisee and are contiguous to the Company’s existing Wendy’s operations in Jacksonville, FL. Commenting on the acquisition Robert E. Schermer, Jr., CEO, stated, “This transaction represents a continuation of our stated growth strategy to build long-term shareholder value through new restaurant development and consolidation within the Wendy’s franchise system.”
The Company estimates the acquisition will add $13.2 million in annual sales and be accretive to consolidated earnings and EBITDA going forward. The transaction was funded through a combination of cash on hand and acquisition credit facilities.
The Company plans to install POS upgrades and transition the back-of-house over to the Meritage operating system protocol. Meritage is undertaking a Wendy’s renovation cycle termed “image activation” with the goal of completing renovations in a majority of its restaurants over the next five years. Image activation is the newest Wendy’s system design standard, which includes major interior and exterior restaurant upgrades aimed at creating “A Cut-Above” guest experience.
Meritage has completed 13 acquisitions within the Wendy’s franchise system and continues to make significant long-term investments into company restaurants. The Company owns and operates a total of 151 quick service and casual dining restaurants in six states located in Florida, Georgia, Michigan, North and South Carolina and Virginia.
Headquartered in Grand Rapids, MI, the Company employs a growing workforce of approximately 5,100 people. The Company’s public filings can be viewed at www.otcqx.com under the stock symbol MHGU, or at the Company’s website, www.meritagehospitality.com.