Diversified Restaurant Holdings Inc., a 21-unit franchisee of Buffalo Wild Wings and the operator and franchisor of four-unit Bagger Dave’s Legendary Burger Tavern, reported its fourth consecutive year of increased revenue in 2010.
The Southfield, Mich.-based company plans to leverage operating income and new franchise leadership to grow both concepts in the Midwest and Florida in 2011, executives said.
For the Dec. 26-ended fiscal year, DRH tallied net income of $535,000, or 2 cents per share, a 55-percent decrease from net income of $1.2 million, or 4 cents per share, in fiscal 2009. The decline resulted primarily from more than $650,000 of new-restaurant development expenses to open four restaurants in 2010 and three units in February 2011, the company said.
Revenue for 2010 grew 8.4 percent to $45.2 million, compared with $41.8 million a year earlier. DRH opened three Buffalo Wild Wings locations and one Bagger Dave’s unit in 2010, and it acquired nine Buffalo Wild Wings units that DRH had previously managed.
“We continue to prove our ability to increase our top line and generate the cash needed to help with the continued expansion of both our Bagger Dave’s and Buffalo Wild Wings concepts,” Michael Ansley, president and chief executive of DRH, said in a statement. “Despite adverse economic conditions, we were confident to push forward with our growth plan based on our belief in the brands, our choice of current locations and our opportunity to take advantage of a favorable real estate market for new locations.”
In February, DRH opened Buffalo Wild Wings restaurants in Traverse City, Mich., and Lakeland, Fla., as well as a Bagger Dave’s in Brighton, Mich. Two more Bagger Dave’s units in Michigan and one additional Buffalo Wild Wings in Florida are planned for the remainder of 2011.
The company recently hired Bill McClintock as senior vice president of franchise development, a post he most recently filled at McAlister’s Deli. DRH has won approval to franchise Bagger Dave’s in Michigan, Ohio, Indiana, Wisconsin and Kentucky.
In addition to its four current company-owned Bagger Dave’s locations in Michigan, DRH also is the franchise operator of seven Buffalo Wild Wings units in Florida and 14 wing outlets in Michigan.
Contact Mark Brandau at [email protected].