GRAND RAPIDS — Restaurant operator Meritage Hospitality Group Inc. continues its growth spurt with a pair of deals to acquire the assets of 10 Wendy’s restaurants in Georgia and Texas.
Meritage (OTCQX: MHGU) expects the deals to close in the third quarter of 2019, pending due diligence and other approvals.
The company expects the stores to add $17.9 million in annual sales. Meritage generated $435.3 million in sales for all of 2018.
“Acquisitions, renovations and new restaurant openings are integral parts of our business model, as we expand in designated market areas,” Meritage CEO Robert Schermer, Jr. said in a statement.
Terms of the deals were not disclosed.
Previously, Meritage said it planned to invest $100 million to develop 40 new Wendy’s restaurants in the next five years, as MiBiz previously reported.
Under an agreement the company signed with the Wendy’s organization, Meritage will receive “significant economic incentives,” including royalty and marketing fee relief, to open the restaurant locations by the end of 2024, according to a statement.
The incentive plan is contingent on Meritage annually updating 10 percent of its existing Wendy’s restaurants to the corporate brand standards.
Meritage operates a portfolio of 321 restaurants in 16 states and employs more than 10,000 people, according to a statement.