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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. _________)
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QUALITY DINING, INC.
(Name of Issuer)
Common Stock, no par value 747456P 10 5
(Title of class of securities) (CUSIP number)
David W. Schostak
NBO, LLC
25800 Northwestern Highway
Suite 750
Southfield, Michigan 48075 (248) 357-6126
(Name, address and telephone number of person authorized
to receive notices and communications)
March 22, 1999
(Date of event which requires filing of this statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box [x].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 12 pages)
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<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 747456P 10 5 13D Page 2 of 12 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON NBO, LLC
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: WC
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: Michigan
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,200,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: OO
- ------------------ -------------------------------------------------------------
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 747456P 10 5 13D Page 3 of 12 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON Jerome L. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,200,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 747456P 10 5 13D Page 4 of 12 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON David W. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,200,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 747456 P 10 5 13D Page 5 of 12 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON Robert I. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,200,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
<PAGE>
- ----------------------------------- ----------------------------------
CUSIP No. 747456 P 10 5 13D Page 6 of 12 Pages
- ----------------------------------- ----------------------------------
- ------------------ -------------------------------------------------------------
1 NAME OF REPORTING PERSON Mark S. Schostak
S.S. OR I.R.S. IDENTIFICATION NO.
OF ABOVE PERSON
- ------------------ -------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [_]
- ------------------ -------------------------------------------------------------
3 SEC USE ONLY
- ------------------ -------------------------------------------------------------
4 SOURCE OF FUNDS: PF, OO
- ------------------ -------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e): [_]
- ------------------ -------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER: 0
SHARES
------- --------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 1,200,000
OWNED BY
------- --------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 0
REPORTING
------- --------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER: 1,200,000
- ------------------ -------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING
PERSON: 1,200,000
- ------------------ -------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES: [_]
- ------------------ -------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 9.5%
- ------------------ -------------------------------------------------------------
14 TYPE OF REPORTING PERSON: IN
- ------------------ -------------------------------------------------------------
<PAGE>
ITEM 1. SECURITY AND ISSUER.
This Statement on Schedule 13D (the "Statement") relates to the
common stock, no par value (the "Shares"), of Quality Dining, Inc., an Indiana
corporation (the "Company"). The principal executive offices of the Company are
located at 4220 Edison Lakes Parkway, Mishawaka, Indiana 46545.
ITEM 2. IDENTITY AND BACKGROUND.
This Statement is being filed by and on behalf of NBO, LLC ("NBO"),
Jerome L. Schostak, David W. Schostak, Robert I. Schostak and Mark S. Schostak
(collectively, the "Schostaks" and together with NBO, the "Reporting Persons").
NBO is a Michigan limited liability company, the members of which are the
Schostaks. The principal business of NBO is investing in securities of the
Company. The present principal occupation of each of the Schostaks is (i) acting
as principals of Schostak Brothers & Company, Inc., a full service real estate
company, and (ii) acting as principals of King Venture, Inc., an entity which
operates restaurants in the state of Michigan. During the last five years, none
of the Reporting Persons has (a) been convicted in a criminal proceeding or (b)
been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
The business address of each of the Reporting Persons is 25800
Northwestern Highway, Suite 750, Southfield, Michigan 48075.
The Schostaks are all citizens of the United States.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
NBO purchased an aggregate of 1,200,000 Shares for total
consideration (including brokerage commissions) of $4,516,740.90 derived from
the working capital of NBO. The last purchase of Shares by NBO was made on
December 18, 1998.
ITEM 4. PURPOSE OF THE TRANSACTION
The Reporting Persons acquired their Shares because they believe
such Shares are undervalued and, consequently, represent a favorable investment
opportunity. The market prices of the Shares have declined since such
acquisition, with the Company reporting a loss for the fourth quarter of fiscal
1998 and earnings of only $.01 per share for the first quarter of fiscal 1999.
On March 22, 1999, David W. Schostak and Mark S. Schostak met with Daniel
Fitzpatrick, the Chairman, President and Chief Executive Officer of the Company,
and John Firth, the Executive Vice President, General Counsel and Secretary of
the Company, to discuss, in general, the Company's businesses and operations.
Based upon such meeting and their analysis of the Company's financial
performance, the Reporting Persons are concerned whether the Company is taking
all steps possible to enhance shareholder value.
As a result of the foregoing developments, the Reporting Persons
intend to review their investment in the Company on a continuing basis and,
depending on various factors, including the Company's business, affairs and
financial position, other developments concerning the Company, the price level
of
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<PAGE>
the Shares, conditions in the securities markets and general economic and
industry conditions, as well as other investment opportunities available to
them, may in the future take such actions with respect to their investment in
the Company as they deem appropriate in light of the circumstances existing from
time to time. Such actions may include, without limitation, the purchase of
additional Shares in the open market, in privately negotiated transactions or
otherwise, or the sale at any time of all or a portion of the Shares now owned
or hereafter acquired by them to one or more purchasers.
In addition, although the Reporting Persons currently have no
specific plans or proposals with respect thereto, the Reporting Persons may also
explore with management of the Company the possibility of, seek to influence
management of the Company with respect to, or directly propose or initiate, a
merger or other business combination between the Company and another entity, a
sale of the Company or all or substantially all of its capital stock or assets
or another extraordinary corporate transaction. The Reporting Persons reserve
the right to participate, alone or with others, in any such proposals or
transactions with respect to the Company, its securities or assets. However, it
should not be assumed that the Reporting Persons will take any of the foregoing
actions.
Except as set forth above, as of the date of this Statement none of
the Reporting Persons has any plans or proposals, which relate to or would
result in any of the actions set forth in parts (a) through (j) of Item 4.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) As of the date of this Statement, NBO beneficially owned in the
aggregate 1,200,000 Shares constituting 9.5% of the outstanding Shares (the
percentage of Shares owned being based upon 12,599,444 Shares outstanding on
January 18, 1999, as set forth in the Company's Annual Report on Form 10-K for
the fiscal year ended October 25, 1998).
Each of the Schostaks, as a member of NBO, may be deemed to
beneficially own Shares which NBO beneficially owns. Each of the Schostaks
disclaims beneficial ownership of such Shares for all other purposes.
(b) The responses to Items 7-11 on each of pages 2-6 hereof which
relate to voting and disposition of Shares with respect to each Reporting Person
are incorporated herein by reference.
(c) The Reporting Persons have not engaged in any transactions in
the Shares during the past sixty days.
(d) No other person is known to have the right to receive or the
power to direct the receipt of dividends from, or the proceeds from the sale of,
the Shares.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
To the best of the knowledge of the Reporting Persons, there are no
contracts, arrangements, understandings or relationships (legal or otherwise)
among the Reporting Persons or between the Reporting Persons and any other
person with respect to any securities of the Company, including but not limited
to transfer or voting of any of the securities, finder's fees, joint ventures,
loan
8
<PAGE>
or option arrangements, puts or calls, guarantees of profits, division of
profits or loss, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
The following Exhibit is filed herewith:
1. Joint Filing Agreement.
[The remainder of this page intentionally left blank.]
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<PAGE>
SIGNATURES
After reasonable inquiry and to the best of their knowledge and
belief, the undersigned certify that the information contained in this Statement
is true, complete and correct.
Dated: March 24, 1999
NBO, LLC
By: /s/ David W. Schostak
----------------------------------
David W. Schostak, Member
/s/ Jerome L. Schostak
----------------------------------
Jerome L. Schostak
/s/ David W. Schostak
----------------------------------
David W. Schostak
/s/ Robert I. Schostak
----------------------------------
Robert I. Schostak
/s/ Mark S. Schostak
----------------------------------
Mark S. Schostak
10
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
1. Joint Filing Agreement.
11
Exhibit 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) under the Securities Exchange Act
of 1934, as amended, the persons named below agree to the joint filing on behalf
of them of a statement on Schedule 13D (including amendments thereto) with
respect to the common stock, no par value, of Quality Dining, Inc.; and further
agree that this Joint Filing Agreement be included as an Exhibit to such joint
filing. In evidence thereof, the undersigned hereby execute this Agreement this
24th day of March, 1999.
NBO, LLC
By: /s/ David W. Schostak
----------------------------------
David W. Schostak, Member
/s/ Jerome L. Schostak
----------------------------------
Jerome L. Schostak
/s/ David W. Schostak
----------------------------------
David W. Schostak
/s/ Robert I. Schostak
----------------------------------
Robert I. Schostak
/s/ Mark S. Schostak
----------------------------------
Mark S. Schostak
12
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