SOUTHFIELD, Mich., Sep 20, 2011 (GlobeNewswire via COMTEX) -- Said David Burke, CFO of Diversified Restaurant Holdings, (OTCBB:DFRH), referencing the continued growth of the company, "With this opening we are one step closer to achieving our 2011 restaurant growth target for both Bagger Dave's and Buffalo Wild Wings concepts". He continued, "So often investors in growth companies see rising revenues but are left hoping that EPS will follow; that isn't the case with DFRH as we have had Net Income in the past twelve months of 9 cents per share, and, unlike so many of our fast-growing peers, our business is not 'cash in, cash out,' as witnessed by the 50% Year to Date increase in our cash position and by our Cash Flow Increase of 100% Year over Year."
The restaurant, located at 1351 E. Grand River on the corner of Hagadorn, is a stone's throw away from Michigan State University, the ninth largest campus in the country with over 47,000 students, and a city, unlike many in the Upper Midwest, that has grown 4.4% over the past decade. Michael Ansley, President and CEO commented, "Opening Bagger Dave's in a growth area next to the largest university in the state was an easy decision. We look forward to offering our Bagger Dave's experience to local residents and students alike."
As announced previously, DFRH's plans are to expand Bagger Dave's through both corporately-owned locations and franchised locations in Michigan, Indiana, Ohio, Illinois, Kentucky and Wisconsin, which will be fully funded ventures, as DFRH recently received a new $7 million DLOC and a $1 million revolving line of credit that will be used to expand the number of BWW locations in the states of Michigan and Florida and to develop additional Bagger Dave's stores.
Launched in 2008, Bagger Dave's intends to fill the niche between fast food and casual dining, while providing quality food at a fast-casual price point in a full-service, neighborhood-oriented environment.
The Bagger Dave's concept focuses on local flair with the interior showcasing historic photos of the city in which it resides. It also features an electric train that runs above the dining room and bar areas. 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(R), Train Wreck Burger(R), and Bagger Dave's Amazingly Delicious Turkey Black Bean Chili(R). Currently, there are five locations in the state of Michigan, with another under construction and scheduled to open in the fourth quarter of 2011. DRH is approved to franchise Bagger Dave's in the states of Michigan, Indiana, Ohio, Illinois, Kentucky, and Wisconsin. For more information, please visit www.baggerdaves.com.
The Company is also a leading BWW franchisee and currently operates 21 BWW restaurants (seven in Florida and 14 in Michigan). A twenty-second location, to be located in University Park, Florida, is under construction and is anticipated to open in the fourth quarter of 2011. The recipient of many franchise awards, including an award for the Highest Annual Restaurant Sales, DRH remains on track to fulfill its Area Development Agreement with Buffalo Wild Wings, Inc., which requires a total of 32 BWW restaurants in Michigan and Florida by 2017. Combined with the six restaurants DRH has outside of this Area Development Agreement, the total restaurant count for the Company will be 38.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. Forward-looking statements are based upon the current beliefs and expectations of management. All statements addressing operating performance, events, or developments that DRH expects or anticipates will occur in the future, including but not limited to franchise sales, restaurant openings, financial performance, and adverse developments with respect to litigation or increased litigation costs, the operation or performance of the Company's business units, or the market price of its common stock are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of risk factors and uncertainties including, without limitation, our ability to operate in new markets, the cost of commodities, the success of our marketing and other initiatives to attract customers, customer preferences, operating costs, economic conditions, competition, the availability of financing for franchisees and the Company, and the impact of applicable regulations. These and other risk factors and uncertainties are more fully described in the Company's most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission. Undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, DRH disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.
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SOURCE: Diversified Restaurant Holdings, Inc.