GRAND RAPIDS, Mich., Dec. 21, 2022 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), the nation's premier franchise operator, today announced that the Company has entered into a definitive agreement to acquire a portfolio of Wendy's restaurants located in the Mid-West.
'We are very excited by this acquisition opportunity and remain on pace for a record number of new Wendy's location openings in 2022 and 2023. Acquisitions, renovations, and new restaurant development are integral parts of our Wendy's restaurant business model as we grow into new market areas. The Company has successfully completed 27 Wendy's acquisitions over the past decade and remains a leader in new restaurant development within the Wendy's system. This year the Company was recognized by the Wendy's brand with the ‘U.S. Monument Award for Visionary Growth & Expansion',' stated Meritage CEO, Robert Schermer, Jr.
The pending acquisition is subject to customary due diligence and standard franchise approvals. The acquisition is scheduled to close in the first half of 2023 and would add approximately $65.0 million in sales annually. The Company plans to use a combination of cash and credit facilities to fund the transaction.
The Company is forecasting robust growth in 2023, driven by acquired restaurants and newly built locations within the Wendy's and Taco John's quick-service restaurant brands. Our new and reimaged Wendy's restaurants continue to provide a strong catalyst for continued sales and earnings growth, which has allowed us to deliver years of profitable growth and shareholder dividends.
The Company's five-year, 500 restaurant growth plan includes expanding its Wendy's operations, as well as the development of both Taco John's and Morning Belle, a breakfast-brunch restaurant brand created and owned by the Company. Meritage continues to provide best in class results through a performance-based culture committed to operational excellence, strategic acquisitions, and real estate development.
Meritage Hospitality Group, Inc. is the nation's premier restaurant operator, with 353 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 11,000 employees. The Company has approximately 9.7 million (fully diluted) common shares outstanding. The Company's public filings can be viewed at URL, under the stock symbol MHGU, or the Company's website URL.
SAFE HARBOR STATEMENTCertain information in this new 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 URL.
CONTACT: Robert E. Schermer, Jr., CEOMeritage Hospitality Group Inc.(616) 776-2600