JACKSONVILLE, Fla., Feb. 6, 2017 /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 Yobe Frozen Yogurt.
Yobe is a leading self-serve yogurt franchise with 34 locations spread throughout Florida, Georgia, Louisiana and New Jersey. Of the 34 locations, 15 consist of traditional retail sites and the remaining 19 consist of islands and end caps located in convenience stores. Yobe has also recently created a new vending machine concept that is set to launch in the near future. Yobe generated approximately $900,000 in revenue and vendor rebates during 2016.
"Our proposed acquisition of Yobe is significant because it represents an expansion of our business into a new segment of the quick service restaurant market," stated Richard W. Akam, Chief Executive Officer of ARC Group, Inc. "Yobe is a proven and successful brand that provides a variety of options beyond traditional company-owned and franchised locations, such as convenience store islands and end caps that require a minimal investment by the store owner. These additional sales channels can provide ARC Group with additional revenue sources that have high growth potential in our current markets and additional states."
ARC Group is expected to acquire Yobe for $1.4 million along with a $900,000 earn-out payment tied to Yobe's performance during the first two years post-closing. The acquisition is expected to close within the next 90 days and be funded through a combination of cash and debt. The closing is contingent upon, among other things, the execution of a definitive purchase agreement and the acquisition of suitable financing by ARC Group.
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. For more information about Dick's Wings exciting menu offering and locations, and for additional franchising information, please visit www.dickswingsandgrill.com.
About Yobe Frozen Yogurt
Yobe Frozen Yogurt is a self-serve yogurt franchise with 34 locations in Florida, Georgia, Louisiana and New Jersey. Of the 34 locations, 15 consist of traditional retail sites and the remaining 19 consist of islands and end caps located in convenience stores. Yobe offers premium low-fat and fat-free frozen yogurt, gelato and smoothies in a variety of delicious flavors along with a large selection of toppings in a fun and friendly environment. For more information about Yobe, please visit www.myyobe.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. For more information about ARC Group, please visit www.arcgrpinc.com.
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.