Southfield, Michigan-based Diversified Restaurant Holdings Inc. (NASDAQ: SAUC), the largest franchisee for Buffalo Wild Wings (BWW), said it is exploring strategic alternatives for its Bagger Dave’s restaurants and brand.
The company also said it promoted CFO David Burke to president and CEO on January 1, 2017. He will replace the company’s founder, president and CEO, Michael Ansley, who will retain his current position as chairman after the transition.
“This change will free me up to focus on the broader, longer term strategic plan for DRH and alternatives for Bagger Dave’s,” Ansley commented.
The thinly traded company’s shares fell 4.19% to $1.60, giving Diversified Restaurant a total market value of $42.13 million.
The company owns and operates 19 Bagger Dave’s restaurants in Indiana, Michigan and Ohio. The company also operates 63 BWW franchised restaurants in key markets in Florida, Illinois, Indiana, Michigan and Missouri. The company was founded in 1999.
Last December the company sold nearly a third of its 26 Bagger Dave’s Burger Tavern restaurants.
The average age of the Bagger Dave’s restaurants is less than 3.5 years. For the first quarter of 2016, their average weekly sales volume (AWV) was $22,500, compared to a Q1-2015 AWV above $23,500, the company said in a statement.
“Last year, we made the strategic decision to focus our resources on the further development and expansion of our Buffalo Wild Wings franchise while we right-sized our Bagger Dave’s operations to grow average unit volume and drive profitability. We continue to believe the Bagger Dave’s concept has potential,” Ansley added.
Bagger Dave’s Burger Tavern is a full-service, ultra-casual restaurant and bar concept. Bagger Dave’s specializes in locally-sourced, never-frozen prime rib recipe burgers, all-natural lean turkey burgers, hand-cut fries, locally crafted beers on draft, hand-dipped milk shakes, salads and black bean turkey chili.
The concept focuses on local flair of the city in which the restaurant resides by showcasing historical photos. It also features an electric train that runs above the dining room and bar areas.
The menu focuses on burgers, with a range of sides. Burgers are offered with a choice of approximately four proteins; USDA, fresh prime-rib recipe beef (offered in regular or petite size patties), Michigan ground turkey, farm-raised, cage-free grilled chicken breasts and black bean patties.
Its guests can choose from a list of chef-created burgers, including the Train Wreck Burger, the Blues Burger and Tuscan Chicken. Guests can also choose to Create Your Own, which allows them to totally customize their experience by choosing from a range of proteins, buns, cheeses, house-recipe sauces presenting bold and new flavors, premium toppings, such as bacon, egg, guacamole and approximately 20 complimentary toppings, such as sauteed mushrooms and onions, barbecue sauce and other standard condiments.
Guests can choose from a selection of sides, including fresh hand-cut fries, Dave’s Sweet Potato Chips, Amazingly Delicious Turkey Black Bean Chili and its fresh, made from scratch Twisted Mac ‘N’ Cheese.
The fries are cut in-house from domestic Northeastern potatoes and cooked in cottonseed soy bean specialty oil, using a seven-step Belgian-style process producing a fry reminiscent of those served at community fairs.
Dave’s Sweet Potato Chips are a Bagger Dave’s specialty using fresh-cut sweet potatoes from North Carolina. Guests can choose from its own signature dipping sauces to complement their order entree and sides.
Bagger Dave’s offers other entrees, such as an Awesome Grilled Cheese sandwich, a California BLT sandwich, Sloppy Dave’s sandwich and entree-sized chopped salads with grilled chicken breast.
Bagger Dave’s also offers hand-dipped ice cream and milkshakes with a range of free mix-ins, adult shakes, sommelier-selected wines and a full selection of liquors.