DFRH to Acquire BWLD Restaurants

Zacks

Diversified Restaurant Holdings, Inc. (DFRH) – a leading franchisee of Buffalo Wild Wings, Inc. (BWLD) – recently inked a deal to acquire eight Buffalo Wild Wings restaurants for $14.7 million. The Buffalo Wild Wings restaurants to be purchased are in Indiana and Illinois. The acquisition is expected to complete by the end of October 2012.

Minnesota-based, Buffalo Wild Wings owns, operates and franchises Buffalo Wild Wings Grill & Bar restaurants. The company currently operates 837 Buffalo Wild Wings restaurants in 48 states across United States and Canada.

Along with the franchise of Buffalo Wild Wings restaurants, Diversified Restaurant owns, operates, and franchises Bagger Dave's Legendary Burger Tavern full-service, ultra-casual restaurant concept.  The company currently operates 7 Bagger Dave's restaurants in Michigan and 22 Buffalo Wild Wings restaurants, including 14 in Michigan and 8 in Florida.

Diversified Restaurant is keen on selecting the best locations for new outlets that are in close proximity to entertainment venues across the state. With the completion of the acquisition, Diversified Restaurant will operate around 46 Buffalo Wild Wings restaurants by the end of 2017.

The company is also expanding its Bagger Dave's restaurants and expects to open around six restaurants in 2012. Diversified Restaurant is set to franchise Bagger Dave's restaurants in the states of Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, and Wisconsin in the future.

With these expansion plans, the total number of Buffalo Wild Wings and Bagger Dave's restaurants is projected to increase from 30 to 45 by the end of 2012.

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