ARC — Investor Presentation (January 2019)
16 slides from ARC's investor presentation, Jan 29, 2019
Slide 1: Investor Presentation January 2019
Investor Presentation January 2019 OTCQB: ARCK Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor This presentation contains "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 19 95, as amended, that are intended to be covered by the safe harbor created thereby. All statements other than statements of hist ori cal fact contained herei
Slide 3: About ARC Group
About ARC Group • Restaurant management company with a focus on diversified, full service restaurants and brands • Parent company of Dick’s Wings and Grill ® • Family - oriented regional restaurant chain with locations in FL and GA • 4 company - owned restaurants (2 of which are currently operating)
Slide 4: Offering Summary
Offering Summary 4 OTC: ARCK Issuer: ARC Group, Inc. Exchange/Ticker : OTCQB / ARCK Offering Type: PIPE Securities Offered : Up to 5,000,000 units, each unit comprised of one share of common stock and one warrant to purchase one share of common stock Offering Price: $1.40 per unit Minimum Offering A
Slide 5: Senior Management Team
Senior Management Team Seenu G . Kasturi, Chairman, CEO & CFO . Mr . Kasturi has served as our Chief Executive Officer since January 2 , 2019 and has served as our Chief Financial Officer and Chairman of our board of directors since January 2017 . He served as our President from January 2017 to Janu
Slide 6: Market Overview – Casual Dining
Market Overview – Casual Dining • In order to compete effectively and increase market share, we believe we need to focus on: x Expanding the customer demographic x Elevating the dining experience x Expanding To Go and Delivery opportunities x Improving service, delivered by competent, trained staff
Slide 7: Holding Structure/Value Proposition
Holding Structure/Value Proposition • Diversified portfolio of growing brands • Ability to leverage franchising, marketing, operational, logistics and financial expertise across brands • Disciplined focus on driving sales, reducing costs and expanding margins • Increased purchasing power • Economies
Slide 8: Dick's Wings & Grill: Financial Performance
Dick’s Wings & Grill: Financial Performance • After our ownership change in 2013, ARC Group increased average sales volume per location from $699,000 in 2013 to $1,032,000 in 2018 – target average sales volume of $1 million per location • Innovative menu & unique brand products • Gift card programs
Slide 9: Multi-Pronged Growth Strategy
Multi - Pronged Growth Strategy • Utilize proven strategies to drive sales growth • Open new company - owned restaurant locations o Focus on key markets and what we believe to be most profitable brands for those markets • Employ aggressive marketing campaign to drive growth in new franchise location
Slide 10: Acquisition Strategy
Acquisition Strategy • Intend to focus on growing, profitable businesses and underperforming businesses that could benefit from our experienced management team, training business programs, business model and partnerships • We believe the middle - market provides attractive multiples: targeting 3 - 6
Slide 11: Fat Patty's Acquisition
Fat Patty’s Acquisition • Completed acquisition of Fat Patty’s in August 2018 • Own and operate 4 locations in West Virginia and Kentucky • Offers a number of specialty burgers and sandwiches, wings, appetizers, salads, wraps, and steak and chicken dinners in a family friendly, casual dining environ
Slide 12: Tilted Kilt Acquisition
Tilted - Kilt Acquisition • Announced plans to acquire Tilted Kilt Pub and Eatery® • Goal to close in Q1 2019 • 30 locations in operation in 14 states and Canada • The Tilted Kilt franchise generated almost $14 million in revenue during 2017 • Requires us to raise approximately $2 million prior to c
Slide 13: Financial Overview
Financial Overview 13 OTC: ARCK Sep. 30 2018 Sep. 30 2017 Restaurant sales 4,076,307$ 2,595,679$ Franchise and other revenue 690,892 509,032 Franchise and other revenue - related party 100,994 123,343 Total revenue 4,868,193 3,228,054 Operating expenses Cost of sales 1,360,529 869,600 Labor 1,222,55
Slide 14: Investment Highlights
Investment Highlights 14 OTC: ARCK Established brands Senior management team with significant experience in the restaurant industry Steady growth in revenue and increasing restaurant locations Track record of successful acquisitions and pipeline of future attractive targets Net income and positive C
Slide 15: Key Statistics
Key Statistics Ticker: ARCK Exchange: OTCQB Share price (as of 1/25/2019): $1.25 Common stock outstanding (as of 1/25/2019): 7.1M Series A convertible preferred stock (as of 1/25/2019) (1) : 450K Shares of common stock underlying other convertible securities (as of 1/25/2019): 940K Market capitaliza
Slide 16: Thank you. For additional information
Thank you. For additional information: Crescendo Communications, LLC David K Waldman/ Natalya Rudman Tel: 212 - 671 - 1021 Email: ARCK@crescendo - ir.com OTC: ARCK 16