JACKSONVILLE, Fla., Jan. 09, 2019 (GLOBE NEWSWIRE) -- ARC Group, Inc. (OTC: ARCK), a restaurant holding company with a focus on diversified, full service restaurants and brands, announced today that in addition to his current position as Chairman and CFO of the Company, Mr. Seenu G. Kasturi has assumed the role of Chief Executive Officer with an expanded focus on the Company’s acquisition strategy. Richard Akam will retain the role of Chief Operating Officer, responsible for driving organic growth and integration of the operating subsidiaries.
Mr. Kasturi stated, “ARC Group is in a period of unprecedented growth, both organic and through acquisitions. In this new capacity as CEO, I look forward to accelerating our growth strategy through carefully selected and strategic acquisitions, where we can acquire undervalued assets at attractive multiples and benefit from the tremendous operating synergies. We now have a strong, proven track record, and I look forward to replicating this success given the state of the market and robust opportunities we have identified. We look forward to the continued leadership of Rick in his role as Chief Operating Officer. Among his many career accomplishments, Rick served as CEO of Hooters, where he was largely responsible for the company’s rapid growth and success, along with other very significant achievements in senior management roles within the industry. Rick brings a unique skill set that will be invaluable as we continue on our current trajectory, in order to ensure sustained, profitable growth.”
Mr. Akam continued, “Despite a challenging market within the casual dining segment, ARC Group has grown rapidly by expanding the customer demographic within our stores, elevating the dining experience, improving menus, enhancing service and implementing new technologies to streamline and automate processes. Since 2013, we have increased average unit volume at Dick’s Wings & Grill, and have grown system wide sales from $10 million to $22 million in 2017. With the addition of Fat Patty’s and the pending acquisition of Tilted Kilt, we are on track to generate pro forma annualized revenue in excess of $25 million. Importantly, through strict financial discipline and by leveraging the operating synergies across our platform, we are well positioned to significantly enhance the profitability of our portfolio.”
Seenu G. Kasturi has served as ARC Group’s Chairman and CFO since January 2017, and served as the Company’s President from January 2017 until his appointment as its CEO. He has served as the President and Chief Executive Officer of Blue Victory Holdings, Inc., an asset development firm focused primarily on the ownership and management of branded restaurants, since October 2009. He has also served as the President, Treasurer and Secretary of Acquisitions, LLC, a Louisiana limited liability company that owns and operates restaurants, since February 2013. From June 2005 to October 2009, Mr. Kasturi served as the President of K&L Investment Realty, an owner and manager of restaurants and real estate properties. Prior to that, he served as a certified financial planner, a registered broker and an investment advisor. Mr. Kasturi earned a Bachelor of Arts degree from Andhra University in Visakhapatnam, India.
Richard Akam has served as ARC Group’s Secretary since July 2013 and as its Chief Operating Officer since January 2013. He served as the Company’s CEO from July 2013 until the recent appointment of Mr. Kasturi as CEO. Prior to joining ARC Group, Mr. Akam served as the Chief Operating Officer of Ker’s Winghouse from September 2012 to January 2013. From May 2011 to July 2012, he served as the Chief Operating Officer of Twin Peaks Restaurants. Mr. Akam served as the Chief Operating Officer of First Watch Restaurants from February 2005 to December 2008 and as the Chief Operating Officer of Raving Brands from October 2003 to February 2005. Prior to that, he served in various roles with Hooters of America for approximately 20 years, including serving as its President and Chief Executive Officer from 1995 to 2003. Mr. Akam is also the founding member of Akam & Associates, LLC, a restaurant consulting firm that has provided consulting services to the restaurant industry since 2009. Mr. Akam earned a Bachelor of Arts degree from the University of Louisville.
About ARC Group, Inc.
ARC Group, Inc., headquartered in Jacksonville, Florida, is a holding company with a focus on the quick serve restaurant industry. ARC is the owner, operator and franchisor of Dick’s Wings & Grill®, a family-oriented restaurant chain with locations in Florida and Georgia. Now in its 23rd year of operation, Dick’s Wings serves over 25,000 wings daily, and prides itself on its award-winning chicken wings, hog wings and duck wings spun in its signature sauces and seasonings. ARC operates four company-owned restaurants, three company-owned concession stands, and has 19 franchise locations. ARC also owns the Fat Patty’s® franchise, with four locations in West Virginia and Kentucky. Fat Patty’s offers a number of specialty burgers and sandwiches, wings, appetizers, salads, wraps, and steak and chicken dinners in a family friendly, casual dining environment.
Pro Forma Financial Information
The pro forma financial information included in this press release was prepared by management for illustrative purposes only using unaudited financial information for Tilted Kilt and Fat Patty’s that was provided to ARC Group by Tilted Kilt and Fat Patty’s, respectively. The pro forma financial information is not necessarily indicative of the financial position or results of operations that would have been realized had ARC Group completed the acquisition of Tilted Kilt and Fat Patty’s on January 1, 2018, nor is it meant to be indicative of any anticipated financial position or future results of operations that ARC Group, Tilted Kilt or Fat Patty’s will experience in the event the acquisition of Tilted Kilt is completed in the future. In addition, the pro forma financial information does not include any pro forma adjustments to reflect any operational efficiencies, cost savings or economies of scale that may be achievable, or the impact of any non-recurring charges and transaction-related costs that result directly from the proposed acquisition. Future results of operations are also subject to risks and uncertainties that could cause such results to differ materially from those reflected in the pro forma financial information. Readers are cautioned not to place undue reliance on the pro forma financial information presented in this press release. See “Safe Harbor Provision” below regarding forward-looking statements presented in this press release.
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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