<PAGE>
SCHEDULE 14A
(Rule 14A-101)
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
Filed by the Registrant [X]
Filed by a party other than the Registrant [_]
Check the appropriate box:
[_] Preliminary Proxy Statement
[_] Confidential, For Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[_] Definitive Proxy Statement
[X] Definitive Additional Materials
[_] Soliciting Material Pursuant to Rule 14a-12.
QUALITY DINING, INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified in Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on the table below per Exchange Act Rules 14a-6(i)(1)
and 0-11.
(1) Title of each class of securities to which transaction applies:
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
- --------------------------------------------------------------------------------
(5) Total fee paid:
- --------------------------------------------------------------------------------
[_] Fee paid previously with preliminary materials.
- -------------------------------------------------------------------------------
[_] Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee
was paid previously. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
(1) Amount previously paid:
- --------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
- --------------------------------------------------------------------------------
(3) Filing Party:
- --------------------------------------------------------------------------------
(4) Date Filed:
- --------------------------------------------------------------------------------
<PAGE>
[BURGER KING/TM/ LOGO APPEARS HERE]
71 Units
[CHILIS/R/ GRILL & BAR LOGO APPEARS HERE]
28 Units
[PAPA VINOS ITALIAN KITCHEN LOGO APPEARS HERE]
8 Units
[GRADY'S AMERICAN GRILL/TM/ LOGO APPEARS HERE]
36 Units
<PAGE>
Superior "Operators"
================================================================================
. Disciplined operating systems
. Marketing capability
. Menu development and management
. New unit and real estate expertise
. Management depth and breadth
. Upper tier sales and margin performance
[LOGO]
<PAGE>
Long Term Vision
================================================================================
MAXIMIZE SHAREHOLDER VALUE
[LOGO]
<PAGE>
Cash Flow Margins
================================================================================
. Strong Cash Flow Margins
Drive Success
[LOGO]
<PAGE>
Strategic Plan - Back to Basics
================================================================================
. Focus on restaurant operations
. Optimize cash flow
. Aggressively deleverage
. Implement long term capital structure
. Deliberate and calibrated growth
. Divest underperforming restaurants
. Conduct share repurchase
[LOGO]
<PAGE>
The Bruegger's Story
================================================================================
. Acquisition background
. What went wrong
. Decision to sell
[LOGO]
<PAGE>
Quality Dining - Then and Now
===============================================================================
. Excessively leveraged...
moderately leveraged
. Litigation risk high...
substantially mitigated
. Unstable capital structure...
permanent long term structure
. Support services in turmoil...
support services outstanding
. Development on hold...
pipeline established
[LOGO]
<PAGE>
================================================================================
Status of Strategic Initiatives
[LOGO]
<PAGE>
Aggressively Deleverage
================================================================================
Q1 1998 Q4 1999
------- -------
Funded Debt $ 134 million $ 114 million
Consolidated
Cash Flow $20.3 million $25.5 million
Funded
Debt/Cash Flow 6.59x 4.48x
[LOGO]
<PAGE>
Long Term Capital Structure
================================================================================
. $49 million mortgage facility - 18 years
. $76 million bank facility - 3.5 years
. Stable and constant support in debt markets
[LOGO]
<PAGE>
Deliberate and Targeted Growth
================================================================================
. Expansion calibrated with deleveraging
. 2 new units in Q1
. Development pipeline established
[LOGO]
<PAGE>
Divest Underperforming Restaurants
================================================================================
. Non-cash charges
. Enhances cash flow
. Supports strategic plan
[LOGO]
<PAGE>
Share Repurchase
================================================================================
. Company recognizes stock is undervalued
. 562,500 shares since November, 1999
. Average purchase price of $2.32
. Approximate book value $4.00
[LOGO]
<PAGE>
The Real NBO Story
================================================================================
. Direct competitor
. Seeking proprietary information
. Never put forward offer - any offer
. Cannot offer better operating strategy
. Thinly veiled attempt to steal company
[LOGO]
<PAGE>
NBO's History As Shareholder
================================================================================
. Not "long suffering" shareholder
. Acquired shares from 8/98 to 12/98
. Estimated average purchase price $3.75
[LOGO]
<PAGE>
The NBO "Solution"
================================================================================
. Auction the company
. Redeem the pill
. Run company "more efficiently"
. Lower G&A = lower margins
. QDI G&A below industry averages
[LOGO]
<PAGE>
NBO is Self Interested
================================================================================
. Role on Board would be self serving
. Access to competitive information
. No demonstrated ability to outperform current management
. Strategy is not aligned with all shareholders
[LOGO]
<PAGE>
The Auction Debunked
================================================================================
. Bad time for auction
. No inquiries or offers
. Destabilizing to employees and franchisors
. NOL not transferable
. Contingent liabilities value inhibitor
. No likelihood of significant premium
. Breakup is unrealistic
[LOGO]
<PAGE>
Shareholder Rights Plan
================================================================================
. Enacted in response to Bruegger's
. Appropriate protection today
. Not impediment to a sale
. Board will consider results of
shareholder vote
[LOGO]
<PAGE>
Quality Dining Board Appointment
================================================================================
. Filled 1999 vacancy with outside director
. Comprised of 5 outside / 2 management
. Ellis was a financial advisor to
Bruegger's - conflict of interest
[LOGO]
<PAGE>
Long Term Focus For Shareholders
================================================================================
. Quality Dining has a strategy...it's working
. Quality Dining has a proven track record
. NBO is self interested and disruptive to strategy
. Creating value through operational performance
[LOGO]
<PAGE>
Drivers of Shareholder Value
================================================================================
Increased Shareholder Value Through:
- Debt reduction
- New unit growth
- Strong margins
- Share repurchase
[LOGO]
