Diversified Restaurant Holdings reports preliminary Q3 revenue of US$26.3M, up 56.1% from year-ago period; comparable restaurant sales up approximately 3.7%
October 16, 2013
– Grew third quarter revenue by 56.1% to $26.3 million with 20 new restaurants and strong comparable restaurant sales growth of 3.7%
Company on track to open ten restaurants in 2013 with five openings scheduled by year end
Diversified Restaurant Holdings, Inc. (BAGR) ("DRH" or the "Company"), the creator, developer, and operator of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Freshly-Crafted Burger Tavern(R) ("Bagger Dave's") and one of the largest franchisees for Buffalo Wild Wings(R) ("BWW"), announced preliminary unaudited sales results for the third quarter ended September 29, 2013.
The Company continued to execute its expansion strategy during the traditionally slow summer months resulting in revenue growth of 56.1% to $26.3 million in the 2013 third quarter from $16.8 million in the prior-year period. The Company opened two locations during the recent third quarter, and at the end of the period had 50 restaurants operating, comprised of 15 Bagger Dave's and 35 BWW of which eight BWW were acquired in September 2012. This was an increase of 66.7% from 30 restaurants at the end of the prior-year third quarter.
Year-to-date revenue of $80.3 million increased 56.5% from $51.3 million during the nine-month period of 2012.
On a consolidated basis, comparable restaurant sales were up approximately 3.7% for the third quarter of 2013, and benefited from increased traffic and pricing. There were 36 comparable restaurants for the period, which included 30 BWW and six Bagger Dave's. Comparable restaurant sales were up approximately 4.6% for the 2013 nine-month period.
Preliminary results remain subject to the completion of normal quarter-end accounting procedures and are subject to change. The Company expects to release financial and operating results for its third quarter after markets close on Wednesday, November 13, 2013.
About Diversified Restaurant Holdings
Diversified Restaurant Holdings, Inc. ("DRH" or the "Company") is the creator, developer, and operator of the unique, full-service, ultra-casual restaurant concept, Bagger Dave's Freshly-Crafted Burger Tavern(R) ("Bagger Dave's") and one of the largest Buffalo Wild Wings(R) ("BWW") franchisees. Between the two concepts, the Company currently operates 49 corporate-owned restaurants in Michigan, Florida, Illinois and Indiana, and one franchised Bagger Dave's in Missouri, for a total of 50 restaurants. The Company routinely posts news and other important information on its website at www.diversifiedrestaurantholdings.com.
Bagger Dave's offers a full-service, family-friendly restaurant and bar with a casual, comfortable atmosphere. The menu features freshly-made burgers, accompanied by more than 30 toppings from which to choose, along with 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). 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 14 corporate-owned locations and one franchised location. For more information, visit www.baggerdaves.com.
DRH operates 35 BWW restaurants: 17 in Michigan, 10 in Florida, 4 in Illinois and 4 in Indiana. The Company has opened 21 new BWW restaurants in fulfillment of its 32-store Area Development Agreement ("ADA") with franchisor Buffalo Wild Wings, Inc. (BWLD). The remaining 11 restaurants under the ADA agreement, along with an additional franchise agreement in Indiana, suggest that the Company will operate 47 BWW restaurants by 2017.