Restaurant company acquires 5 fast-food locations
A local company has acquired five fast-food restaurants in the Lone Star State.
Grand Rapids-based Meritage Hospitality Group said it has acquired five Wendy’s locations in the Odessa, Texas, and Midland, Texas market area.
Terms of the deal were not disclosed.
The company expects the five restaurants to add about $9.1 million in annual sales and be accretive to earnings going forward.
“The acquisition of the five Odessa/Midland area restaurants is consistent with our previously announced five-year growth plans to expand our operating base to 400 Wendy’s restaurants,” said Robert Schermer Jr., CEO, Meritage.
“We intend to immediately integrate each of the acquired restaurants into our operating and accounting platforms and fold them into our Wendy’s remodeling program that is designed to modernize the restaurants and enhance the overall guest experience.”
The acquisitions align with Meritage’s goal to be a leader of development within the Wendy’s system.
The company also recently announced a commitment to build 40 Wendy’s restaurants by 2024 under Wendy’s development agreement.
It also recently announced plans to develop 35 Morning Belle restaurants in the breakfast-brunch segment, the first of which is slated to open Sept. 26 at 1600 East Beltline Ave. NE.
Meritage is on pace for a record number of new restaurants to be built across its 16 states of operation in 2019 and 2020, the company said.
Meritage Hospitality Group (OTC: MHGU) is a restaurant company with a portfolio of 326 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.
Meritage reported 2018 sales of $435.3 million.