Michigan-based Diversified Restaurant Holdings Inc. (Nasdaq: SAUC) announced Monday it is closing eight of its Bagger Dave’s restaurants, including seven Indiana locations. DRH says the restaurants were "underperforming."
The Indiana locations include Indianapolis, Carmel, Fishers, Avon, Greenwood, Crown Point and Schererville, Only one Bagger Dave’s restaurant remains in Indiana, located in Fort Wayne.
“DRH is committed to taking all appropriate and necessary actions to enhance value for all shareholders,” said Michael Ansley, chairman, president and CEO of DRH. “We have therefore chosen to optimize our portfolio and improve overall profitability by closing 8 underperforming Bagger Dave Restaurants. This will allow us to focus our attention on more profitable restaurants.”
The eighth closed restaurant was located in Michigan. DRH says the eight restaurants generated $5.5 million in revenue but lost $600,000 in the first nine months of 2015. The company’s other 18 Bagger Dave’s locations generated $14.1 million in revenue and earned $700,000.