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FAT Brands Inc. (FAT)

NasdaqCM - NasdaqCM Real Time Price. Currency in USD
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9.68+0.04 (+0.41%)
At close: 04:00PM EDT
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  • M
    Mathew
    Which of there stock tickers would be the best to buy and hold for the long term FAT, FATBB, or FATBP
  • j
    jdog
    Wonder what earnings will bring today? Been a good run last few weeks
    Bullish
  • D
    D
    People WILL INDEED Continue To Eat at fast food / fast casual restaurants REGARDLESS of inflation & recessions. It's just our modern human nature: we all simply enjoy 'going out to eat' for lots of reasons. and FAT has a pretty larger number of restaurant brands under their umbrella.
  • A
    AmeriWILL
    DAVE app and Snap getting together. $$$$
    Bullish
  • K
    Kyle
    I wanted him to reduce the payout on the commons to start getting debt under control— instead he raised it. Good for him and his Fog Cutter as majority stake holder… but is he looting this company by amassing these huge debts, paying himself handsomely—Only to leave investors holding the bag?
  • J
    Joep
    Step App USD
    Use refcode 47ZBQWJZ to get $FAT on the webapp already
    Bullish
  • S
    Steve
    WAS THE COMPANY BUYING BACK THE PREFERRED SHARES? THE VOLUME WAS FAR BEYOND NORMAL FOR A FEW WEEKS, AND NOW IT HAS JUST PLAIN DRIED UP TO MINIMAL SHARES TRADED? iT MAKES ME QUESTION THINGS OF WHO WAS DOING ALL THE BUYING AS PRICES WENT FROM $13 TO $18 PLUS.
  • J
    Jim
    FAT Brands Gobbles up More Restaruants Summary
    100% technical buy signals.
    15 new highs and up 49.75% in the last month.
    439.49% gain in the last year.
    The Barchart Chart of the Day belongs to the restaurant operator FAT Brands (NASDAQ:FAT). I sorted Barchart's All Time High list first by the highest Weighted Alpha, then used the Flipchart function to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 4/29 the stock gained 57.46.

    This mornings press release says it all:
    FAT Brands Inc. Agrees To Acquire Global Franchise Group For $442.5 Million
    GlobeNewswire - Mon Jun 28, 5:00AM CDT

    Largest Restaurant Acquisition of 2021 to include Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker

    Combined System-wide sales of approximately $1.4 billion

    FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ:FAT) (the "Company") today announced that it has agreed to acquire Global Franchise Group, which franchises and operates a portfolio of five quick service restaurant concepts, Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker, from Serruya Private Equity, Inc. and Lion Capital LLP, for $442.5 million in cash and stock.

    The cash portion of the purchase price will be funded from the issuance of a new series of notes and cash on hand. The Company will also issue to the sellers $25 million in common stock and $67.5 million in Series B cumulative preferred stock. The transaction is expected to close by the end of July 2021, subject to expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

    With the acquisition of GFG, FAT Brands will have more than 2,000 franchised and company owned restaurants around the world with combined annual system-wide sales of approximately $1.4 billion. Approximately 87% of GFG's stores are located in the United States. Based on current projections and assumptions, including realization of expected synergies and return to pre-COVID restaurant sales, the acquisition is expected to eventually increase annual EBITDA by approximately $40 million to approximately $55-$60 million.

    "This acquisition is a key strategic milestone for FAT Brands. We have been very acquisitive in recent years, seeking to add strong and growing restaurant brands to our portfolio. Now that the economy is emerging from COVID-19 and restaurants are rapidly recovering, we are pleased to have reached this agreement to incorporate a powerhouse restaurant franchising group with the support of Serruya Private Equity and Lion Capital," said Andy Wiederhorn, President and CEO of FAT Brands. "The five new restaurant concepts have been very resilient coming out of the pandemic and will complement our existing brands. Furthermore, we will acquire GFG's manufacturing operations, which will provide greater efficiencies and incremental revenue opportunities to our company."

    "This is truly a transformative deal for both FAT Brands and GFG. Andy has an exciting vision for FAT Brands and through his recent acquisitions, he has been able to create brand synergies within the portfolio while maintaining an asset-light business model," said Michael Serruya, Managing Director at Serruya Private Equity and Chairman of the Board of GFG. "I look forward to our continued involvement with GFG through our company's support of FAT Brands from an equity and strategic perspective."

    Lyndon Lea, Managing Partner of Lion Capital, added: "We are incredibly thankful to the management team of GFG, for their incessant focus on building a great business and culture, while successfully navigating an unprecedented period amidst COVID-19. We wish FAT Brands and GFG the best in the next phase of their journey."

    Duff & Phelps Securities, LLC served as financial advisor to GFG and Serruya Private Equity. Sheppard, Mullin, Richter & Hampton LLP and Greenberg Traurig, LLP acted as legal counsel to FAT Brands. Bryan Cave Leighton Paisner LLP acted as legal counsel to Serruya Private Equity and Lion Capital.

    About FAT (Fresh. Authentic. Tasty.) Brands

    FAT Brands (NASDAQ:FAT) is a leading global franchising company that strategically acquires, markets and develops fast casual and casual dining restaurant concepts around the world. The Company currently owns nine restaurant brands: Fatburger, Johnny Rockets, Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises approximately 700 units worldwide. For more information, please visit www.fatbrands.com.

    About Global Franchise Group, LLC

    Global Franchise Group, LLC is a strategic brand management company with a mission of championing franchise brands and the people who build them. The company builds great brands that connect people with craveable products and memorable experiences. GFG currently supports more than 1,400 fran
  • S
    SheTriedIt
    LOAD UP while the price is low. People will be out in droves this Spring, Summer, and Fall to eat, drink and be merry! I'm waiting to jump back in under $10 for 2000 shares. This hits $25 in its current state and will easily soar to $40-50 in the next couple of years. Buy enough to sell some halfway and some to keep for long. HAS DIVIDENDS
  • J
    Jim
    I’m trying to better understand this play!

    The company shows negative ebitda and is insolvent, with current liabilities 3x current assets.

    How/why is it trading where it is? Other than T.P. I do not see great brands with franchising interest.

    What am I missing?
  • S
    Steve
    this is not good - looks like the management is loading up with debt to the max.
    what's next? secondary offering on stocks?
  • B
    Bill
    I find this confusing. The current monthly dividend is $0.179. Does the dividend of the existing series B preferred now get reduced to $0.137 to match the issuance of the new shares?
  • t
    timothy
    Just declared another quarterly common stock dividend even though they are losing money. Why? Dividends paid by a non-profitable company are considered "return of capital" and as such are not taxable. Lots of free cash for the big shareholders... Tim Sr.
    Bearish
  • P
    P*ssed
    Look at the Balance Sheet...company is effectively bankrupt.
  • C
    Chris
    Company statement shows they are confident they did nothing wrong. "Mr. Wiederhorn categorically denies these allegations and at the appropriate time we will demonstrate that the government has its facts wrong."

    Company is growing and last earnings report was strong. The preferreds are a steal at this level in my opinion. Added more shares here to cost average down.
  • g
    greg
    Any word on insider trading? Yes, the over 17% yield on the preferred looks good, but knowing that some board members and fat cats are laying down their cash would show people like me that the ones who should know alot more than me, have faith in the future of the company----plus that they too like 17% return.
  • S
    Steve
    something is not connecting right - so FAT bought Johnny Rockers for $25M last year, another mega acquisition for $440M last month and yet, it's burning cash while issuing massive preferred shares?

    With both acquisitions, the company expects to see $50M EBITDA ($15M on Johnny Rockets, $40M on new acquisition) but still no profit/cash flow.

    What am I missing here?

    Currently, it's trading at 8X revenue which doesn't make sense either.
  • S
    Steve
    So apparently, the company was making much more money than reported.
    I guess this made the company possible to buy out those big brands.

    Board members must remove Andy until the investigation is over.
    Otherwise, the board members will be responsible very soon.
  • C
    Christian
    If you go thru their SEC quarterly reports, you will find that in 2019 they were paying 20% interest on a $24 million loan. If the loan was not repaid by 6/30/20 they would also have had to give them over 1 million shares of stock. This was paid off in March when they borrowed $40 million at a combined rate of 7.75%. There is an old saying that debt players know a lot more than stock players (paraphrase). The new lender has a lot of confidence that was not there a short 14 months prior. Good things ahead.
  • K
    Kyle
    I'm trying to figure the danger the company is in as opposed to just the CEO/family.
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