ARC Group, Inc. Announces Record Q1 2016 Results

LAFAYETTE, La., May 16, 2016 /PRNewswire/ — ARC Group, Inc. (OTCQB: ARCK), the owner, operator and franchisor of the award-winning Dick’s Wings & Grill® concept, announced its financial results for the first quarter of 2016, highlighted by the Company’s achievement of record revenue and earnings per share of $0.02.

Financial Highlights

The Company achieved the following financial results for its fiscal quarter ended March 31, 2016:

  • Revenue increased 38% to $308,615 for Q1 2016 from $223,016 for Q1 2015.
  • Operating expenses decreased 18% to $187,429 for Q1 2016 from $230,487 for Q1 2015.
  • The Company generated operating income of $121,186 for Q1 2016 compared to an operating loss of $(7,471) for Q1 2015.
  • The Company generated net income of $100,642, or $0.02 per share, for Q1 2016 compared to a net loss of $(24,364), or$(0.00) per share, for Q1 2015.
  • Net cash provided by operating activities increased $81,376 to $87,129 for Q1 2016 from $5,753 for Q1 2015.

“We are off to a terrific start in 2016,” commented Richard W. Akam, Chief Executive Officer of ARC Group, Inc.  “Royalties from our franchisees, supported by several new restaurant openings, helped drive revenue growth to record levels.  Our revenue growth, combined with reduced operating expenses, helped us achieve net income from operations of $100,642.  We will continue to focus on revenue generation and cost containment throughout 2016 so as to continue strengthening our balance sheet.”

Outlook

“We expect Q2 2016 to be another strong quarter for us,” stated Akam. “We recently opened new restaurants in Pensacola, Florida andKingsland, Georgia that will contribute additional royalties for us, and expect to announce additional restaurant openings during the quarter.  Our low-cost conversion options are also generating interest from prospective multi-unit franchisees, a segment of the franchising community that we have been investing heavily in.  Accordingly, we expect Q2 2016 revenue and net income to increase over Q1 2016 levels.”

Dick’s Wings restaurants are family fun fooderys™ where both families and sports fans can go to enjoy a unique restaurant experience from first bite to last call™.  Dick’s Wings offers a variety of boldly-flavored menu items highlighted by its award-winning, Buffalo, New York-style chicken wings and hog wings and its Dick’s Blingz boneless chicken wings, for which it boasts 365 mouth-watering flavors.  It also offers customers a variety of fresh sandwiches, burgers, wraps, salads and signature waffle fries.  Guests enjoy these menu items in an elevated sports-themed environment that includes flat screen TVs located throughout each restaurant and children’s areas filled with video games and other forms of children’s entertainment.

Dick’s Wings is actively offering franchise opportunities in the Orlando, Tampa, Gainesville and Mobile/Pensacola metropolitan areas.  For more information about Dick’s Wings exciting menu offering and locations, and for additional franchising information, please visitwww.dickswingsandgrill.com.

About ARC Group, Inc.                                                         

ARC Group, Inc., headquartered in Lafayette, Louisiana, is the owner, operator and franchisor of the Dick’s Wings & Grill concept and the co-owner of the owner, operator and franchisor of the Wing Nutz concept.  Now in its 22nd year of operation, Dick’s Wings prides itself on its award-winning chicken wings and hog wings spun in its signature sauces and seasonings.  Wing Nutz offers a large selection of premium baked chicken wings and other baked products.  Wing Nutz also offers its own proprietary line of craft beers under the name “Nut Job Beers”.  Dick’s Wings has 17 restaurants in Florida and five restaurants in Georgia.  It also has two concession stands at EverBank Field, home of the NFL’s Jacksonville Jaguars.  Wing Nutz has nine restaurants in Utah, one restaurant in Las Vegas, Nevada, one restaurant inRichardson, Texas and one restaurant in Nampa, Idaho.

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, 2015 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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SOURCE ARC Group, Inc.

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