Meritage Opens 53rd Restaurant; Fifth O'Charley's Restaurant in Michigan
Meritage Hospitality Group Inc. (AMEX:MHG ) announced the grand opening of its fifth O'Charley's restaurant located at 9729 Belleville Road in Van Buren Township, Michigan, in front of the Meijer supercenter.
Meritage's Chief Executive Officer, Robert E. Schermer, Jr., stated, "This opening is an important milestone for the Company as it represents our fifth O'Charley's restaurant in the State of Michigan, and Meritage's 53rd restaurant in operation. Our development plans for 2006 include at least one additional O'Charley's and one additional Wendy's."
2006 Outlook
For 2006, we are encouraged by a number of emerging business cycles and opportunities. In our Wendy's business segment, we are entering the first wave of new products and marketing initiatives implemented by our franchisor, Wendy's International, after enduring system-wide margin compression for several years. In addition, beef and commodity costs have currently eased. In our O'Charley's business segment, we are working toward steady margin improvements after absorbing the heavy costs of developing our base of O'Charley's restaurants in 2005. Our franchisor is in the process of building a new management team to lead the O'Charley's brand, and we anticipate a new restaurant model that offers lower building costs and higher operating efficiencies. Separately, Meritage continues to make investments in technology, operating, financial and information systems that will help Meritage expand its franchise brands and geographical presence.
Mr. Schermer stated, "We remain committed to increasing shareholder value and returning capital to our shareholders while maintaining the capacity to grow our business both organically and through strategic acquisitions. I believe Meritage is prepared to expand its franchise brands and geographical presence while continuing to achieve operational excellence."
Meritage is one of the nation's premier restaurant franchise operators. Meritage currently operates 53 restaurants in two primary business segments through well-recognized "Best of Class" brands; Wendy's in the QSR Segment and O'Charley's in the Casual Dining Segment. Headquartered in Grand Rapids, Michigan, Meritage has approximately 2,000 employees.
2006 Outlook
For 2006, we are encouraged by a number of emerging business cycles and opportunities. In our Wendy's business segment, we are entering the first wave of new products and marketing initiatives implemented by our franchisor, Wendy's International, after enduring system-wide margin compression for several years. In addition, beef and commodity costs have currently eased. In our O'Charley's business segment, we are working toward steady margin improvements after absorbing the heavy costs of developing our base of O'Charley's restaurants in 2005. Our franchisor is in the process of building a new management team to lead the O'Charley's brand, and we anticipate a new restaurant model that offers lower building costs and higher operating efficiencies. Separately, Meritage continues to make investments in technology, operating, financial and information systems that will help Meritage expand its franchise brands and geographical presence.
Mr. Schermer stated, "We remain committed to increasing shareholder value and returning capital to our shareholders while maintaining the capacity to grow our business both organically and through strategic acquisitions. I believe Meritage is prepared to expand its franchise brands and geographical presence while continuing to achieve operational excellence."
Meritage is one of the nation's premier restaurant franchise operators. Meritage currently operates 53 restaurants in two primary business segments through well-recognized "Best of Class" brands; Wendy's in the QSR Segment and O'Charley's in the Casual Dining Segment. Headquartered in Grand Rapids, Michigan, Meritage has approximately 2,000 employees.
