LAFAYETTE, La., Oct. 24, 2016 /PRNewswire/ -- ARC Group, Inc. (OTCQB: ARCK), the owner, operator and franchisor of the award-winning Dick's Wings & Grill® concept, today announced that it has entered into a non-binding letter of intent to acquire two of its Dick's Wings® restaurants from DWG Acquisitions, a franchisee of the company.
Should the acquisition be completed, ARC Group would acquire the Dick's Wings located at 6055 Youngerman Circle in Argyle Village in Jacksonville, Fla., and the Dick's Wings located at 100 Marketside Avenue in the Nocatee development in Ponte Vedra, Fla. – two of the highest-grossing and most profitable restaurants in the franchise. The purchase price is expected to consist of a payment of $250,000 per restaurant at closing, along with a future payment to be made based on a multiple of each restaurant's future EBITDA. The Company is expected to pay for the restaurants through a combination of debt forgiveness, cash and stock. The acquisition is expected to close before the end of the year.
The Dick's Wings located in Jacksonville, Fla. was ARC Group's first free-standing restaurant and is its largest restaurant, with approximately 6,700 square feet of space. It seats more than 200 guests and employs 40 team members from the local area.
The Dick's Wings restaurant located in Ponta Vedra, Fla., which first opened in April 2013, quickly became one of the Company's highest-grossing restaurants. It is located in world-renowned Ponta Vedra, just a few minutes away from St. Augustine, Jacksonville, and Ponte Vedra Beach, the home of the PGA.
"We are very excited to make these two locations our first company-owned restaurants," stated Richard W. Akam, Chief Executive Officer of ARC Group, Inc. "Our Ponte Vedra location is a beautiful, state-of-the-art facility that has been one of our biggest revenue producers since it first opened its doors to the public in 2013. Our Argyle Village restaurant is located in a high-traffic area that includes six hotels, numerous shops, and close proximity to the Orange Park Mall. Collectively, these restaurants generate more than $3 million in revenue each year, and each restaurant is very profitable."
"To date, we have been exclusively a franchisor of Dick's Wings restaurants," continued Akam. "This approach served us well, as it enabled us to expand quickly without the need to bring large amounts of capital to the table. With 24 Dick's Wings franchised restaurants in our portfolio and more on the way, we are evaluating opportunities to own select Dick's Wings restaurants that have solid revenue and profits. We believe that a healthy mix of company-owned and franchised restaurants will provide us with more flexibility and financial stability as we continue to grow our brand."
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 visit www.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 18 restaurants in Florida and six 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, two restaurants in Texas, one restaurant in Nevada and one restaurant in 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/arc-group-announces-letter-of-intent-to-acquire-two-dicks-wings-restaurants-300349386.html
SOURCE ARC Group, Inc.