Exhibit 99.1

	NEWS RELEASE
27680 Franklin Road • Southfield, Michigan 48034

FOR IMMEDIATE RELEASE           

Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%;

Continues Strong Cash Generation for Growth

SOUTHFIELD, MI, August 8, 2014 -- Diversified Restaurant Holdings, Inc. (NASDAQ: BAGR) ("DRH" or the "Company"), the creator, developer and operator of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Burger Tavern^® ("Bagger Dave's") and one of the largest franchisees for Buffalo Wild Wings^® ("BWW"), announced today the results for the second quarter ended June 29, 2014.

Michael Ansley, President and CEO of DRH commented, “We delivered another solid quarter with double digit sales growth. In fact, we have had double digit quarter-over-quarter growth for 24 of the last 26 quarters. To continue our long-term success, we’ve taken many steps to ensure that we stay focused on delighting our guests through investment in our locations and technology.”

Second Quarter Highlights

Mr. Ansley continued, “Customers are enjoying the new interior and exterior design introduced at two Bagger Dave’s restaurants this quarter. We believe that it has been successful at attracting customers and contributing to the growth of our brand. In addition, we continue to generate cash and deliver robust levels of restaurant profitability. And, as we continue to expand our top-line, we expect to demonstrate additional operating leverage.”

Second Quarter 2014 Review

Revenue for the quarter was $30.0 million, an increase of $3.0 million, or 11.3%, over the prior-year period. Higher revenue was driven by the addition of nine new restaurants comprised of eight Bagger Dave’s and one BWW location, as well as a 1.2% (unadjusted) increase in second quarter consolidated comparable-store sales for 30 BWW and 10 Bagger Dave’s. Comparable-store sales growth was driven primarily by increased traffic in the last two months of the quarter; however, it was negatively impacted 110 basis points due to restaurant closings for the Easter Sunday holiday. Easter fell in the second quarter this year and in the first quarter in 2013. When adjusting for the Easter holiday, comparable-store sales were up 2.3%. The Company achieved stronger traffic in May and June as the World Cup was a solid attraction, though this was somewhat offset by the impact of local professional sports teams’ performance. Two-year comparable sales grew 7.9% for the quarter.

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

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At the end of the second quarter, the Company had 56 restaurants, comprised of 20 Bagger Dave’s and 36 BWW. This was an increase of 19.1% from 47 restaurants at the end of the prior-year second quarter. Subsequent the close of the second quarter, DRH completed its acquisition of three Florida BWW restaurants. By year end, the Company expects to have 68 restaurants.

Second Quarter 2014 Operating Results

Food, beverage, and packaging costs as a percentage of revenue declined to 28.7% compared with 29.7% in the second quarter of 2013. The 100 basis point improvement was primarily due to lower chicken wing prices. The average cost per pound for bone-in chicken wings was $1.40 compared with $1.61 in the prior-year period.

Compensation costs increased by $0.9 million, or 12.9%, to $7.8 million.  The increase was driven by additional staffing required for the nine new restaurants.  As a percentage of revenue, compensation costs were 25.9% compared with 25.5% in the same quarter last year.

Second quarter general and administrative (G&A) expenses increased by $0.1 million, or 6.3%, to $2.1 million; however, as a percentage of revenue, G&A improved to 7.0% from 7.3% in the 2013 second quarter.

Pre-opening costs increased by $0.1 million, or 13.2%, to $0.9 million from $0.8 million in the prior-year period.  As a percentage of revenue, preopening costs remained consistent with the prior-year period at 3.0%.

Depreciation and amortization as a percentage of revenue increased to 8.3% from 6.7% in the 2013 second quarter, primarily due to the increase in real estate purchases as an alternative to leasing. 

Adjusted EBITDA was up 21.7% to $3.9 million. As a percent of revenue, Adjusted EBITDA expanded 110 basis points to 12.9% compared with the prior-year period. Restaurant-level EBITDA increased 15.8% to $6.0 million and was 19.9% of revenue, an 80 basis point improvement. ⁽¹⁾DRH believes that, when used in conjunction with GAAP measures, restaurant-level EBITDA and adjusted EBITDA, which are non-GAAP measures, provide additional information related to its operating performance. (See reconciliation of restaurant-level EBITDA and adjusted EBITDA in the supplemental tables included at the end of this release.) ⁽¹⁾

Net loss for the second quarter was $0.1 million compared with break-even for the prior-year period, and unchanged on a per share basis.

First Half 2014 Review

Total revenue for the six months ended June 29, 2014 was $60.5 million, an increase of $6.4 million, or 11.9%, over the same period in 2013. The increase reflected $5.9 million that was generated from the opening of nine restaurants and $0.5 million from a 1.2% increase in comparable-store sales.

Restaurant-level EBITDA was up 20.9% to $11.8 million. Adjusted EBITDA increased 21.2% to $7.6 million for the first half of 2014 compared with last year’s first six months. (See reconciliation of restaurant-level EBITDA and adjusted EBITDA in the supplemental tables included at the end of this release.) ⁽¹⁾

Net income for six months ended June 29, 2014 was $0.3 million, a slight increase over the comparable period in 2013.

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

August 8, 2014

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Solid Cash Position and Flexibility for Growth

Cash, cash equivalents and investments were $17.3 million at June 30, 2014, compared with $18.1 million at December 29, 2013. The Company believes that its existing cash, cash from operations and its credit facility will be sufficient to meet its operational funding, development, and obligations for at least the next twelve months.

Fiscal 2014 Outlook

The following expectations for fiscal year 2014 include the expected impact of the recent acquisition of three BWW locations:

Mr. Ansley concluded, “We continue to make great progress and are excited about our sustained level of growth. Our team is energized and excited to be a part of a growing brand and our marketing efforts have greatly increased local coverage of our restaurants. We are anticipating a stronger impact with our fall campaign. We focus on our customers, delivering satisfaction and giving them every reason to return to our stores. We are diligent and believe the Bagger Dave’s concept we are developing will become a broader known brand in time.”

Webcast and Conference Call

DRH will host a conference call and webcast on Friday, August 8, 2014 at 10:00 a.m. Eastern Time, during which management will review the financial and operating results for the second quarter and discuss its corporate strategies and outlook. The review will be accompanied by a slide presentation which will be made available prior to the conference call on the Company’s website at www.diversifiedrestaurantholdings.com. A question and answer session will follow.

The teleconference can be accessed by calling (201) 493-6780. The webcast can be monitored on the Company’s website at www.diversifiedrestaurantholdings.com.

A telephonic replay will be available from 1:00 p.m. Eastern Time on the day of the teleconference through Friday, August 15, 2014. To listen to a replay of the call, dial (858) 384-5517 and enter the conference ID number 13585597, or access the webcast replay via the Company’s website where a transcript will also be posted once available.

About Diversified Restaurant Holdings

Diversified Restaurant Holdings, Inc. (NASDAQ: BAGR) (“DRH” or the “Company”) owns and operates Bagger Dave's Burger Tavern, a full-service, family-friendly restaurant and full bar with a casual, comfortable atmosphere specializing in custom-built, proprietary, fresh prime rib recipe burgers, all-natural turkey burgers, hand-cut fries, locally crafted beers on draft, hand-dipped milk shakes, salads, black bean turkey chili, and much more. Currently, there are 20 company-owned Bagger Dave's restaurants in Michigan and Indiana. DRH plans to open six additional company-owned locations during 2014 in Indiana and Michigan. For more information, visit www.baggerdaves.com.

The Company also operates 40 Buffalo Wild Wings Grill & Bar franchised restaurants in Indiana, Illinois, Michigan, and Florida, with an Area Development Agreement to open an additional 12 locations by 2017. DRH plans to open two additional units in 2014.

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

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The Company routinely posts news and other important information on its website at www.diversifiedrestaurantholdings.com.

Safe Harbor Statement

The information made available in this news release contains forward-looking statements which reflect DRH's current view of future events, results of operations, cash flows, performance, business prospects and opportunities. Wherever used, the words "anticipate," "believe," "expect," "intend," "plan," "project," "will continue," "will likely result," "may," and similar expressions identify forward-looking statements as such term is defined in the Securities Exchange Act of 1934. Any such forward-looking statements are subject to risks and uncertainties and the Company's actual growth, results of operations, financial condition, cash flows, performance, business prospects and opportunities could differ materially from historical results or current expectations. Some of these risks include, without limitation, the impact of economic and industry conditions, competition, food and drug safety issues, store expansion and remodeling, labor relations issues, costs of providing employee benefits, regulatory matters, legal and administrative proceedings, information technology, security, severe weather, natural disasters, accounting matters, other risk factors relating to our business or industry and other risks detailed from time to time in the Securities and Exchange Commission filings of DRH. Forward-looking statements contained herein speak only as of the date made and, thus, DRH undertakes no obligation to update or publicly announce the revision of any of the forward-looking statements contained herein to reflect new information, future events, developments or changed circumstances or for any other reason.

FINANCIAL TABLES TO FOLLOW

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

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DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

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DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

August 8, 2014

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DIVERSIFIED RESTAURANT HOLDINGS, INC. AND SUBSIDIARIES

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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Diversified Restaurant Holdings 2014 Second Quarter Revenue Increases 11.3%; Continues Strong Cash Generation for Growth

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⁽¹⁾ Restaurant-Level EBITDA represents net income (loss) attributable to DRH plus the sum of non-restaurant specific general and administrative expenses, restaurant pre-opening costs, loss on property and equipment disposals, the change in fair value of derivative instruments, depreciation and amortization, other income and expenses, interest, taxes, income attributable to noncontrolling interest and non-recurring acquisition related expenses in Q1 2013 and non-recurring expenses related to the NASDAQ listing in Q2 2013. Adjusted EBITDA represents net income (loss) attributable to DRH plus the sum of restaurant pre-opening costs, loss on property and equipment disposals, the change in fair value of derivative instruments, depreciation and amortization, other income and expenses, interest, taxes, income attributable to noncontrolling interest, and non-recurring expenses. We are presenting Restaurant-Level EBITDA and Adjusted EBITDA, which are not presented in accordance with GAAP, because we believe they provide an additional metric by which to evaluate our operations. When considered together with our GAAP results and the reconciliation to our net income, we believe they provide a more complete understanding of our business than could be obtained absent this disclosure. We use Restaurant-Level EBITDA and Adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue, income from operations, net income, and cash flows from operations, to assess our historical and prospective operating performance and to enhance the understanding of our core operating performance. Restaurant-Level EBITDA and Adjusted EBITDA are presented because: (i) we believe they are useful measures for investors to assess the operating performance of our business without the effect of non-cash depreciation and amortization expenses; (ii) we believe investors will find these measures useful in assessing our ability to service or incur indebtedness; and (iii) they are used internally as benchmarks to evaluate our operating performance or compare our performance to that of our competitors.

Additionally, we present Restaurant-Level EBITDA because it excludes the impact of general and administrative expenses and restaurant pre-opening costs, both which are non-recurring at the restaurant level. The use of Restaurant-Level EBITDA thereby enables us and our investors to compare our operating performance between periods and to compare our operating performance to the performance of our competitors. The measure is also widely used within the restaurant industry to evaluate restaurant level productivity, efficiency, and performance. The use of Restaurant-Level EBITDA and Adjusted EBITDA as performance measures permits a comparative assessment of our operating performance relative to our performance based on GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structure and cost of capital (which affect interest expense and tax rates) and differences in book depreciation of property and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management team believes that Restaurant-Level EBITDA and Adjusted EBITDA facilitate company-to-company comparisons within our industry by eliminating some of the foregoing variations.

Restaurant-Level EBITDA and Adjusted EBITDA are not determined in accordance with GAAP and should not be considered in isolation or as an alternative to net income, income from operations, net cash provided by operating, investing, or financing activities, or other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with GAAP. Neither Restaurant-Level EBITDA nor Adjusted EBITDA should be considered as a measure of discretionary cash available to us to invest in the growth of our business. Restaurant-Level EBITDA and Adjusted EBITDA as presented may not be comparable to other similarly titled measures of other companies and our presentation of Restaurant-Level EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual items. Our management recognizes that Restaurant-Level EBITDA and Adjusted EBITDA have limitations as analytical financial measures, including the following:

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