Exhibit 99
FOR IMMEDIATE RELEASE
CONTACT: Robert E. Schermer, Jr., CEO
Meritage Hospitality Group Inc.
616/776-2600
GRAND RAPIDS, Michigan, August 19, 2004. Meritage Hospitality Group Inc. (AMEX: MHG), the nation’s only publicly traded Wendy’s franchisee and the first O’Charley’s franchisee, today announced the appointment of Stephen L. Gulis, Jr. to the Company’s Board of Directors and Audit Committee, effective September 1, 2004. Mr. Gulis is currently the Executive Vice President, Chief Financial Officer and Treasurer of Wolverine World Wide, Inc. (NYSE:WWW), a West Michigan-based international manufacturer and retail marketer of branded and licensed footwear and performance leathers.
Commenting on the announcement, Robert E. Schermer, Jr., Meritage’s Chief Executive Officer, stated “We are delighted and honored that Steve is joining the Meritage Board. Steve brings substantial public company experience in his current position as Chief Financial Officer of Wolverine World Wide, a highly regarded publicly-held growth company with $889 million in annual sales. Steve’s diversified financial background and experience in creating shareholder value will make him a valuable asset to our Board and its Audit Committee, and should prove invaluable at this juncture of our strategic development plans as we continue to grow Meritage towards a goal of $100 million in revenues by 2007.”
O’Charley’s (NASDAQ/NM: CHUX) is a leading regional high quality food concept in the casual dining restaurant category. Earlier this year, Meritage entered into the nation’s first development agreement with O’Charley’s, giving Meritage the exclusive right to develop O’Charley’s restaurants in the State of Michigan. The Company is scheduled to open its first O’Charley’s restaurant on August 24, 2004, in Grand Rapids, Michigan.
Meritage currently operates 47 “Wendy’s Old Fashioned Hamburgers” restaurants throughout Western and Southern Michigan serving more than nine million customers annually. The Company has been one of the fastest growing franchisees within the Wendy’s franchise system for the past three years. Wendy’s (NYSE:WEN) is the leading national, high quality hamburger concept in the quick-service restaurant category. The Wendy’s franchise system is the third largest quick-service restaurant hamburger chain in the world with more than 6,375 restaurants and system-wide sales in excess of $7.1 billion.
Certainstatementscontainedinthisnewsreleasethatarenothistorical factsconstituteforward-lookingstatements,withinthemeaningofthePrivate SecuritiesLitigationReformActof1995,andareintendedtobecoveredbythe safeharborscreatedbythatAct.Forward-lookingstatementsmaybeidentified bywordssuchas“estimates,”“anticipates,”“projects,”“plans,”“expects,” “believes,”“should,”andsimilarexpressions,andbythecontextinwhichthey areused.Suchstatementsarebasedonlyuponcurrentexpectationsofthe Company.Anyforward-lookingstatementspeaksonlyasofthedatemade.Reliance shouldnotbeplacedonforward-lookingstatementsbecausetheyinvolveknown andunknownrisks,uncertaintiesandotherfactorswhichmaycauseactual results,performanceorachievementstodiffermateriallyfromthoseexpressed orimplied.Meritageundertakesnoobligationtoupdateanyforward-looking statementstoreflecteventsorcircumstancesafterthedateonwhichtheyare made.
Statementsconcerningexpectedfinancialperformance,businessstrategies andactionwhichMeritageintendstopursuetoachieveitsstrategicobjectives, constituteforward-lookinginformation.Implementationofthesestrategiesand achievementofsuchfinancialperformancearesubjecttonumerousconditions, uncertaintiesandriskfactors,whichcouldcauseactualperformancetodiffer materiallyfromtheforward-lookingstatements.Theseinclude,without limitation:competition;changesinthenationalorlocaleconomy;changesin consumertastesandeatinghabits;concernsaboutthenutritionalqualityofour restaurantmenuitems;concernsaboutconsumptionofbeeforothermenuitems duetodiseasesincludingE.coli,hepatitis,andmadcow;promotionsandprice discountingbycompetitors;severeweather;changesintravelpatterns;road construction;demographictrends;thecostoffood,laborandenergy;the availabilityandcostofsuitablerestaurantsites;theabilitytofinance expansion;interestrates;insurancecosts;theavailabilityofadequate managersandhourly-paidemployees;directivesissuedbythefranchisor regardingoperationsandmenupricing;thegeneralreputationofMeritage’sand itsfranchisors’restaurants;legalclaims;andtherecurringneedfor renovationandcapitalimprovements.Inaddition,Meritage’sexpansionintothe casualdiningrestaurantsegmentasafranchiseeofO’Charley’swillsubject Meritagetoadditionalrisksincluding,withoutlimitation,unanticipated expensesordifficultiesinsecuringmarketacceptanceoftheO’Charley’s restaurantbrand,theabilityofourmanagementandinfrastructureto successfullyimplementtheO’Charley’sdevelopmentplaninMichigan,andour limitedexperienceinthecasualdiningsegment.Also,Meritageissubjectto extensivegovernmentregulationsrelatingto,amongotherthings,zoning,public health,sanitation,alcoholicbeveragecontrol,environment,foodpreparation, minimumandovertimewagesandtips,employmentofminors,citizenship requirements,workingconditions,andtheoperationofitsrestaurants.Because Meritage’soperationsareconcentratedincertainareasofMichigan,amarked declineinMichigan’seconomy,orinthelocaleconomieswhereourrestaurants arelocated,couldadverselyaffectouroperations.
