Diversified Restaurant Holdings Reports Fourth Quarter Revenue Up 62.4%
The increase in the number of restaurants was the result of two expansion programs. The Company opened nine restaurants, six Bagger Dave's and three BWW, during 2012 which included the fourth quarter opening of the largest BWW, by square footage, in Downtown Detroit, Michigan. The first franchised Bagger Dave's was also opened in Missouri in June 2012. Additionally, the Company acquired eight BWW restaurants with four operating in Illinois and four in Indiana. The acquisition included the right to develop a fifth Indiana BWW restaurant location, which the Company intends to open by the end of 2013.
Cash and cash equivalents were $2.7 million at December 30, 2012, compared with $1.5 million at December 25, 2011. The Company generated $7.6 million in cash from operations in 2012, up $1.0 million over the prior year, as a result of improved working capital.
Capital expenditures increased to $15.7 million in 2012, with new restaurant construction accounting for $14.5 million. The Company is committed to reinvesting in its stores and is following a definitive schedule of continued improvements and remodeling to maintain a positive dining experience for its guests. For 2013, the Company estimates capital expenditures to range between $22.5 million and $26.0 million, with the majority focused on new restaurant opening expenses.Outlook In 2013, DRH plans to open 10 additional restaurants which will be comprised mostly of Bagger Dave's. Over the next five years, in total, the Company expects to open 35 to 45 new Bagger Dave's and 14 new BWW. Mr. Ansley concluded, "We will remain aggressive in our growth strategy as we progress through 2013. We invested time and resources into building brand recognition for our Bagger Dave's restaurants and we expect significant growth to come from this franchise moving forward. We will also continue expanding our portfolio by adding additional Buffalo Wild Wings restaurants as opportunities for acquisition and geographic expansion arise."
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