JACKSONVILLE, Fla., Aug. 21, 2018 (GLOBE NEWSWIRE) — ARC Group, Inc. (OTC:ARCK), the owner, operator and franchisor of the award-winning Dick‘s Wings & Grill® concept, announced financial results for the second quarter of 2018 ended June 30, 2018.

Second quarter 2018 financial highlights:

Richard W. Akam, Chief Executive Officer of ARC Group, stated, “We are pleased to report that our revenues increased 7% to $1.2 million for the second quarter of 2018. We expect this revenue trend to continue for the remainder of the year as we continue to grow the Dick’s Wings® brand through the execution of our organic growth strategy.  We expect to open 2-3 new company-owned Dick’s Wings restaurants during the remainder of 2018, which should provide a noticeable benefit to our top and bottom line.”

“In addition to our organic growth strategy, we are actively pursuing a number of potential acquisitions that should help us to rapidly scale the business,” stated Seenu G. Kasturi, Chief Financial Officer of ARC Group.  “Specifically, we are targeting acquisitions that are accretive to earnings and/or that offer significant growth prospects.  We believe these acquisitions will benefit from our strong marketing and operating experience, while leveraging our existing infrastructure.”

Mr. Kasturi continued, “In June, we announced that we intend to acquire Tilted Kilt Pub and Eatery® franchise. Tilted Kilt Pub and Eatery has more than 40 locations in operation across the United States and Canada. The brand is well recognized and is a pace setter in the sports bar category.  Additionally, we recently entered into a definitive agreement to acquire Fat Patty’s, a local brand located in West Virginia and Kentucky, that is expected to close at the end of this month and will immediately improve our bottom line.  We will be announcing additional information about this acquisition in the near future.”

About ARC Group, Inc.                                                         

ARC Group, Inc., headquartered in Jacksonville, Florida, is the owner, operator and franchisor of the Dick’s Wings & Grill concept.  Now in its 23rd year of operation, Dick’s Wings prides itself on its award-winning chicken wings, hog wings and duck wings spun in its signature sauces and seasonings.  It also offers its own proprietary line of craft beers under the name “Dick’s Craft Beers”.  Dick’s Wings has 15 restaurants in Florida and five restaurants in Georgia.  It also has two concession stands at TIAA Bank Field (formerly EverBank Field), home of the NFL’s Jacksonville Jaguars, as well as a concession stand at Jacksonville Veterans Memorial Arena, home of the National Arena League’s Jacksonville Sharks.

Dick‘s Wings is actively offering franchise opportunities in Florida, Georgia, Alabama, Louisiana, North Carolina and South Carolina.  For more information about Dick‘s Wings locations, and for additional franchising information, please visit .

Safe Harbor Provision

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created thereby.  All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the Company‘s future financial position, business strategy, plans and objectives, are forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expects,” “intends,” “plans,” “projects,” “estimates,” “anticipates,” or “believes” or the negative thereof or any variation thereon or similar terminology or expressions.  Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct.  Important factors that could cause actual results to differ materially from the Company‘s expectations include, but are not limited to, those factors set forth in the Company‘s Annual Report on Form 10-K for the year ended December 31, 2017 and its other filings and submissions with the SEC.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made.  Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements.

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David Waldman / Natalya Rudman
Crescendo Communications, LLC
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  ARC Group, Inc. Condensed Consolidated Statements of Operations (Unaudited)            For the Three Months Ended  For the Six Months Ended June 30, 2018  June 30, 2017  June 30, 2018  June 30, 2017           Revenue:          Restaurant sales$894,069   $885,989   $1,878,844   $1,754,465 Franchise and other revenue 225,650    165,825    458,909    343,127 Franchise and other revenue – related party 49,110    40,040    77,738    83,058            Total net revenue 1,168,829    1,091,854    2,415,491    2,180,650            Operating expenses:          Restaurant operating costs:         Cost of sales 278,985    311,748    549,520    594,754 Labor 343,167    296,419    597,706    564,898 Occupancy 52,876    63,820    113,335    94,535 Other operating expenses 225,073    187,258    437,191    357,310 Professional fees 118,254    257,590    247,167    283,210 Employee compensation expense 120,207    74,270    251,412    159,593 General and administrative expenses 161,147    16,237    301,732    31,446            Total operating expenses 1,299,709    1,207,342    2,498,063    2,085,746            Income / (loss) from operations (130,880)   (115,488)   (82,572)   94,904            Other income / (expense):          Interest expense (5,479)   (8,299)   (10,873)   (16,224)Other income 80,828    5,474    85,528    9,084            Total other income / (expense) 75,349    (2,825)   74,655    (7,140)           Net income / (loss)$(55,531)  $(118,313)  $(7,917)  $87,764            Net income / (loss) per share – basic and fully diluted$(0.01)  $(0.02)  $(0.00)  $0.01            Weighted average number of shares outstanding – basic and fully diluted 6,901,687    6,734,534    6,933,500    6,691,239                    

  ARC Group, Inc. Condensed Consolidated Balance Sheets       June 30, December 31,  2018 2017  (Unaudited)       Assets         Cash and cash equivalents $32,992  $145,346 Accounts receivable, net  44,363   166,987 Accounts receivable, net – related party  733   1,505 Ad funds receivable, net  10,707   36,837 Ad funds receivable, net – related party  1,765   2,280 Inventory  52,281   45,417 Notes receivable, net  15,853   28,522 Deposits  17,461   21,189 Other current assets  7,234   5,923      Total current assets  183,389   454,006      Notes receivable, net of current portion  3,829   5,106 Property and equipment, net  343,859   99,114      Total assets $531,077  $558,226      Liabilities and stockholders‘ deficit        Accounts payable and accrued expenses $625,194  $467,264 Accounts payable and accrued expenses – related party  75,057   94,150 Accrued interest  15,226   13,472 Settlement agreements payable  270,587   264,997 Accrued legal contingency  159,817   155,935 Notes payable – related party  2,177   30,503 Contingent consideration  56,356   199,682 Deferred franchise fees  27,956   – Other current liabilities  11,643   9,147      Total current liabilities  1,244,013   1,235,150      Deferred franchise fees, net of current portion  130,508   –      Total liabilities  1,374,521   1,235,150      Stockholders‘ equity deficit:        Class A common stock – $0.01 par value: 100,000,000 shares authorized, 6,524,427 and 6,950,869 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively  65,244   69,509 Series A convertible preferred stock – $0.01 par value: 1,000,000 shares authorized, 449,581 and -0- outstanding at June 30, 2018 and December 31, 2017, respectively  4,496   – Additional paid-in capital  4,032,951   3,995,306 Stock subscriptions payable  26,852   26,853 Accumulated deficit  (4,972,987)  (4,768,592)     Total stockholders‘ deficit  (843,444)  (676,924)     Total liabilities and stockholders‘ deficit$531,077  $558,226