Dallas, Texas (July 13 , 2011) – StockGuru shines its Spotlight on Diversified Restaurant Holdings, Inc. (OTCBB: DFRH) (“DRH” or the “Company”), 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 a leading franchisee for Buffalo Wild Wings®(“BWW”), today announced that it has entered into a credit facility with RBS Citizens N.A. that establishes a new development line of credit (“DLOC”) and revolving line of credit (“LOC”) that will be used for the expansion of its BWW and Bagger Dave’s restaurants. The Company closed at $3.97 closing at the upper end of the fifty-two week range of $5.25 – 0.30 on extremely light volume of 100 shares on July 12, 2011.
As part of the credit facility, DRH 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. The terms of the $7 million DLOC is 7 years, maturing on June 7, 2018; the terms of the $1 million LOC is 2 years, maturing on June 7, 2013.
Michael Ansley, President and Chief Executive Officer of DRH, commented, “With our anticipated growth phase, this new line of credit will provide access to capital and additional flexibility in managing our cash requirements as we continue to grow both of our restaurant concepts.”
About Diversified Restaurant Holdings
DRH owns and operates its own unique, full-service, ultra-casual restaurant and bar concept, Bagger Dave’s Legendary Burger Tavern®, which was launched in January 2008. The 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®, Train Wreck Burger®, and Bagger Dave’s Amazingly Delicious Turkey Black Bean Chili®. Currently, there are four locations in the state of Michigan, with two under construction and scheduled to open in the third and fourth quarters 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.
Safe Harbor Regarding Forward-Looking Statements
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.
CONTACT: Investor Contact:
Steven Marcus
DME Capital LLC
Phone: 917-648-0663
Email: [email protected]
Company Contact:
David G. Burke
Chief Financial Officer
Phone: 248.223.9160
Email: [email protected]
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