Restaurant company acquiring 10 fast-food locations
A local restaurant company is acquiring 10 fast-food locations in the southern U.S.
Grand Rapids-based Meritage Hospitality Group entered into two independent definitive asset purchase agreements to acquire a total of 10 Wendy’s restaurants in Georgia and Texas, according to the company today.
The transactions, which are subject to customary due diligence and approvals, are expected to close during the third quarter of 2019, adding about $17.9 million in sales for the company.
“Acquisitions, renovations and new restaurant openings are integral parts of our business model as we expand in designated market areas,” said Robert Schermer Jr., CEO, Meritage Hospitality Group.
The Business Journal recently reported Meritage entered into an agreement with Wendy’s to develop 40 new Wendy’s restaurants over the next five years.
The company will develop the new Wendy’s restaurants by the end of 2024 and receive “significant economic incentives” provided under the Wendy’s 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 about $100 million into the development of the 40 Wendy’s restaurants through a combination of cash on hand and development credit facilities.
“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,” Schermer said.
Meritage Hospitality Group (OTC: MHGU) is a restaurant company with a portfolio of 321 restaurants in numerous states: Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia.
The company has about 10,000 employees.
It operates restaurants under several brands: Wendy’s; Stan Diego; Freighters Eatery & Taproom; and Wheelhouse.
Its newest concept, Morning Belle Brunch Bistro, is scheduled to open in mid-September on the East Beltline in Grand Rapids.
Meritage reported 2018 sales of $435.3 million.