DFRH Announces 34% Revenue Growth in 2011
January 18 2012 - 10:00AM
Diversified Restaurant Holdings, Inc. (OTCBB:DFRH), the owner,
operator, and franchisor of Bagger Dave's Legendary Burger Tavern®
("Bagger Dave's"), and a leading franchisee for Buffalo Wild Wing®
("BWW"), is pleased to offer its shareholders and other interested
parties a review of 2011 and the Company's growth since its
formation.
With the successful openings of six new restaurants in Michigan
and Florida, DFRH has achieved $60.7M in revenue for 2011, $15.5
million or a 34.2% increase over 2010 revenue of $45.2 million. The
openings comprised of three new Bagger Dave's restaurants and three
new BWW restaurants, bringing the total number of stores to
28. Contributing to this growth was positive year-over-year,
same-store-sales results for both concepts with Bagger Dave's at
9.8% and BWW at 4.5%.
2011 has proven to be an accomplished year for the Company,
specifically for its Bagger Dave's concept. In addition to
signing an Area Development Agreement for six stores in the
Midwest with its first franchisee, it developed and implemented its
new on-line ordering system – both new streams of revenue for the
Company. Michael Ansley, President and CEO of DFRH commented,
"We're extremely excited about the growth and customer acceptance
of Bagger Dave's. Every subsequent store that we've built has
produced higher volume than the last. We doubled the number of
Bagger Dave's this year and plan to continue accelerated growth of
this concept throughout the Midwest in 2012."
Experiencing YOY growth is nothing new to DFRH since it's the
type of performance that the Company has enjoyed every year since
its inception in 2007. Through the building of BWW
franchisees, acquisition of BWW restaurants from an affiliated
party and development and growth of its own concept Bagger Dave's,
the company has a sound track record for creating growth as shown
in the chart below.
A chart accompanying this release is available at
http://media.globenewswire.com/cache/15154/file/12277.pdf
DFRH's growth is not at the expense of earnings. The Company has
previously reported positive earnings for the first three quarters
of 2011. Diversified Restaurant Holdings expects to release its Q4
and 2011 Financials in early March 2012.
David Burke, CFO of DFRH stated, "Growth is a challenge for any
business. For DFRH, we've managed to sustain a high growth
rate, profitably, while keeping our balance sheet
healthy. Our credit worthiness, as confirmed by our
$7.0 million development line of credit, $1.0 million working
capital line and ability to secure a $50 million facility, confirms
our lender's belief in what we can achieve. And, with the
tight credit market over the last couple years, this is a
significant achievement."
About Diversified Restaurant Holdings, Inc.
Diversified Restaurant Holdings, Inc. ("DRH") is the owner,
operator, and franchisor of the unique, full-service, ultra-casual
restaurant and bar Bagger Dave's Legendary Burger Tavern™ ("Bagger
Dave's") and is a leading Buffalo Wild Wings® ("BWW") franchisee.
Between the two concepts, the Company currently operates 28
restaurants in Michigan and Florida.
Bagger Dave's offers a full-service, family-friendly restaurant
and bar with a casual, comfortable atmosphere. The menu features
freshly-made burgers (never frozen), accompanied by more than 30
toppings from which to choose, fresh-cut fries, hand-dipped
milkshakes, and a selection of craft beer and wine. Signature items
include Sloppy Dave's BBQ®, Train Wreck Burger®, and Bagger Dave's
Amazingly Delicious Turkey Black Bean Chili®. The Bagger Dave's
concept emphasizes local flair by showcasing historical photos of
the city in which each restaurant resides and features an electric
train that runs above the dining room and bar areas. Currently,
there are six corporate-owned locations in the state of Michigan
and an executed area development agreement to franchise six Bagger
Dave's in five states outside of Michigan. DRH is approved to
franchise Bagger Dave's in the states of Illinois, Indiana,
Kentucky, Michigan, Missouri, Ohio, and Wisconsin. For more
information, visit www.baggerdaves.com.
DRH operates 22 BWW restaurants (14 in Michigan and eight in
Florida). The Company continues to build new BWW restaurants in
fulfillment of its 32 store Area Development Agreement ("ADA") with
franchisor Buffalo Wild Wings, Inc (Nasdaq:BWLD). This agreement,
in addition to six BWW restaurants opened prior to the ADA,
suggests that the Company will operate 38 BWW restaurants in
Michigan and Florida in 2017.
This press release contains comments or information that
constitute forward-looking statements (within the meaning of the
Private Securities Litigation Reform Act of 1995) that are based on
current expectations that involve a number of risks and
uncertainties. Actual results may differ materially from the
results expressed in forward-looking statements. The company
undertakes no obligation to update or clarify forward-looking
statements, whether as a result of new information, future events
or otherwise.
CONTACT: David G. Burke
Chief Financial Officer
Phone: 248.223.9160
Email: dgburke@baggerdaves.com
or
Mark Gilbert Magellan FIN, LLC
Institutional Investor Relations
Phone: 317-867-2839
Email: mgilbert@magellanfin.com
Diversified Restaurant Holdings, Inc.
Buffalo Wild Wings, Inc. (delisted) (NASDAQ:BWLD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Buffalo Wild Wings, Inc. (delisted) (NASDAQ:BWLD)
Historical Stock Chart
From Oct 2023 to Oct 2024