Fat Brands Stock Price, News & Analysis

FAT Brands Inc. (NASDAQ: FAT) has announced the pricing of $250 million of its FATTP Series 2021-1 Fixed Rate Asset-Backed Notes, intended to finance the acquisition of the Twin Peaks restaurant chain. This marks FAT Brands' fifth securitization transaction, with a fixed interest rate of 8.00%. The acquisition will allow FAT Brands to enter the polished-casual dining sector and increase franchised locations for Twin Peaks. The transaction was well-received by investors, showcasing strong demand and effective execution by Jefferies.

FAT Brands has announced plans to expand its restaurant concepts in the Middle East with a total of 136 new locations across five countries, including the UAE, Saudi Arabia, Bahrain, Qatar, and Kuwait. Over the next five years, six brands will launch through a partnership with Kitopi, a cloud kitchen operator. This move follows a decade of successful brand presence in the region. CEO Andy Wiederhorn emphasized the continuing growth and popularity of FAT Brands' concepts, aiming to satisfy local appetites with diverse offerings.

Garnett Station Partners has announced the sale of Twin Peaks, a sports bar franchise, to FAT Brands for $300 million. Founded in 2005 and based in Dallas, Twin Peaks has seen significant growth, including a 15% increase in unit count and a 50% rise in adjusted earnings since Garnett's investment in March 2019. The acquisition aims to leverage FAT Brands' resources to further accelerate Twin Peaks' growth trajectory.

FAT Brands (NASDAQ: FAT) announced it will acquire Twin Peaks, a rapidly growing casual dining chain known for its sports lodge concept, for $300 million. The acquisition aims to diversify FAT's portfolio and is expected to elevate systemwide sales from $1.4 billion to over $1.8 billion. The deal will be financed through $250 million in new securitization notes and Series B preferred stock issuance. The transaction is anticipated to close by the end of September 2021, with expected EBITDA growth of $25 to $30 million post-acquisition.

FAT Brands Inc. (NASDAQ: FAT) has announced a cash dividend of $0.13 per share for the third quarter of fiscal 2021. This dividend applies to both Class A and Class B common stock, with a payment date of September 15, 2021 for shareholders on record as of September 6, 2021. Future dividends will depend on the company's operational results and financial condition. FAT Brands, with a portfolio of 14 restaurant brands, franchises around 2,000 units globally, highlighting its strong position in the franchising market.

FAT Brands reported a significant 167% increase in total revenue to $8.3 million for Q2 2021, compared to $3.1 million in Q2 2020. The company attributes this growth to the acquisition of Johnny Rockets and recovery from COVID-19 impacts. System-wide sales rose by 201.9% year-over-year. However, the net loss widened to $5.9 million or $0.48 per share. The company completed the acquisition of Global Franchise Group for $442.5 million, expanding its portfolio to over 2,000 stores worldwide, with plans for future growth and improved EBITDA projections.

FAT Brands Inc. (NASDAQ: FAT) will hold a conference call to discuss its second quarter 2021 financial results on August 5, 2021, at 5:00 PM ET. A press release with the financial results will be issued prior to the call. Interested participants can dial 1-800-231-0316 in the U.S. or 1-314-696-0504 internationally to access the call, with a replay available until August 12, 2021. The call will be hosted by Andy Wiederhorn, CEO, and Ken Kuick, CFO.

FAT Brands operates 14 restaurant concepts globally, including Fatburger and Johnny Rockets, and franchises approximately 2,000 units.

FAT Brands has completed its acquisition of Global Franchise Group for $442.5 million, enhancing its franchised restaurant units to over 2,000 worldwide. This deal adds five brands, including Round Table Pizza and Great American Cookies, and is projected to boost annual EBITDA by approximately $40 million to $55-$60 million. Additionally, revenues could rise from $36 million to over $100 million. This marks the largest acquisition by a restaurant franchisor in 2021.

FAT Brands has signed a franchise agreement with Red Rombo Group to open 50 co-branded Fatburger and Buffalo’s Express locations in Mexico. The first three restaurants will debut in Mexico City by year-end. This expansion represents the 14th international venture for the brand, with over 70% of Fatburger locations being co-branded. CEO Andy Wiederhorn highlighted the growing fast-casual market in Mexico and expressed commitment to further global expansion. The co-branded model has successfully launched in countries like Singapore and France, enhancing the brand's international footprint.