Diversified Restaurant Holdings, which is also the largest franchisee of Buffalo Wild Wings, noted in May that it was exploring new strategies for the burger concept it created, which has different management needs than BWW as an emerging company-owned brand with a more complex menu.
“The greater focus on our BWW business and its significantly larger size limits the attention and resources we can apply to Bagger Dave’s, which ultimately restricts our ability to build on the recent success of its redefined concept,” Diversified Restaurant Holdings CEO Michael Ansley said in a statement. “As an independent company, we believe Bagger Dave’s will be in a much better position to leverage its redefined concept to drive growth.”
The company created via the spinoff will operate 19 Bagger Dave’s locations, while Diversified Restaurant Holdings will continue to run its 64 Buffalo Wild Wings franchises. Both companies will be publicly traded.
The spinoff isn’t the only upcoming change for Diversified Restaurant Holdings, which announced earlier this year that its current CFO, David Burke, will replace Ansley as CEO, effective at the start of next year.