The company purchased the operating businesses, including personal property, of Back Yard Burgers stores located in Jackson, Tennessee, Tupelo, Mississippi, and Jonesboro, Arkansas, from a franchisee, KEA Foods, effective May 7, 2000. The acquisition will be accounted for as an asset purchase, and the company will finance the purchase with a combination of existing cash on hand and a short-term note payable to the seller. No real property was purchased by the company. Lattimore Michael, CEO of Back Yard Burgers, stated, "I'm excited about the opportunity to add these locations within our core company markets of eastern Tennessee, Arkansas and northern Mississippi. It allows us to continue to expand our market presence without cannibalization of existing company units."
Michael also said he believes the addition of these high-volume, well-run restaurants should add immediate earnings to the company without additional G&A expenses while increasing the company's opportunity for continued expansion in these contiguous areas.
"We are excited about the addition of these stores as company-operated units," commented Michael Myers, COO. "These are high-volume units that are within the media coverage range for our Memphis market, further improving our economies of scale. Our goal is to build critical mass in our existing markets throughout the Southeast. This is a natural step in the process."Back Yard Burgers operates and franchises quick-service restaurants in Memphis, Little Rock, Nashville and other markets across 16 states.
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