Southfield, Mich. — Diversified Restaurant Holdings, Inc., the largest franchisee for Buffalo Wild Wings® and creator and operator of Bagger Dave’s Burger Tavern®, intends to split into two separate, publicly-traded companies through the tax-free spinoff of its Bagger Dave’s business to DRH stockholders. The company previously announced on May 24, 2016 that it was evaluating strategic alternatives for its Bagger Dave’s restaurants and brand.
“Following a comprehensive analysis of various strategic alternatives for Bagger Dave’s, the board and management team concluded that the separation of our BWW and Bagger Dave’s businesses is the best alternative for the company and our shareholders,” says Michael Ansley, chairman, president and CEO. “The separation recognizes that the BWW and Bagger Dave’s concepts are distinct in many respects:
BWW is a franchise brand, whereas we own the Bagger Dave’s brand. BWW is a mature brand, while Bagger Dave’s is still in its early stages. Bagger Dave’s has a much more complex menu and, therefore, more complex food preparation processes. And, we have learned that Bagger Dave’s complexity requires different management and personnel. Separating these two very different businesses will enable each to better pursue their strategies and growth plans independently.”
The company to be formed with the proposed spinoff of the Bagger Dave’s business will own and operate 19 Bagger Dave’s restaurants, which had revenue of $10.7 million in the first half of 2016. DRH will continue to own and operate its 64 franchised BWW restaurants and be listed on the NASDAQ exchange.
The company expects to complete the spinoff in the fourth quarter of 2016.
Diversified Restaurant Holdings, Inc. operates 64 BWW franchised restaurants in Florida, Illinois, Indiana, Michigan and Missouri. The company also owns and operates 19 Bagger Dave’s restaurants in Indiana, Michigan and Ohio. For more information, visit www.diversifiedrestaurantholdings.com.
SOURCE: Diversified Restaurant Holdings, Inc.