Meritage Hospitality Group keeps growing.
The Grand Rapids, Mich.-based company this week said it has agreed to acquire 43 Wendy’s locations in the Midwest. Terms of the deal were not disclosed, but the restaurants are expected to generate an additional $65 million in annual sales for Meritage.
It’s also the latest in a string of Wendy’s deals for the operator, which operates more than 350 restaurants in several states. In addition to Wendy’s, Meritage earlier this year signed a 50-store development agreement with Taco John’s. It also operates its own breakfast-and-lunch concept called Morning Belle.
Meritage’s goal is to grow to more than 500 locations with a combination of acquisitions and new builds.
Acquisitions alone appear to be putting the company on the map. Meritage has completed 27 Wendy’s acquisitions over the past decade.
Meritage is publicly traded over the counter and has generated $467 million in sales in the first nine months, according to its most recent earnings announcement.
“Acquisitions, renovations and new restaurant development are integral parts of our Wendy’s business model as we grow into new market areas,” Meritage CEO Robert Schermer, Jr., said in a statement.
Franchisee acquisitions slowed in 2022 amid a combination of thinning margins and valuation concerns. But companies with access to capital have been able to acquire restaurants.
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