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FAT Brands Inc. (FAT)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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11.65+0.54 (+4.86%)
At close: 4:00PM EDT
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  • 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
  • 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?
  • D
    David
    1st Item To Always Remember and look-at here. WHEN they cut or stop the dividend on their COMMON Shares..... run for the hills (and sell) these preferred shares.... because they'll be next.
  • D
    Deadduck
    Eegistration statement filed with the U.S. Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and it is not soliciting offers to buy these securities in any jurisdiction where the offer or sale is not permitted.
    PRELIMINARY PROSPECTUS SUBJECT TO COMPLETION DATED JUNE 10, 2021shares of 8.25% Series B Cumulative Preferred Stock (Liquidation Preference $25.00 Per Share)FAT Brands Inc. m FAT Brands Inc., which we refer to as “we,” “us” or the “Company”, is offering on a firm commitment basis shares of our 8.25% Series B Cumulative Preferred Stock (which we refer to as the “Series B Preferred Stock”). Each share of Series B Preferred Stock is being offered at a price of $ , for an aggregate offering amount of $ .We will pay cumulative dividends on the Series B Preferred Stock from and including the date of original issuance in the amount of $2.0625 per share each year, which is equivalent to 8.25% of the $25.00 liquidation preference per share. Dividends on the Series B Preferred Stock are payable monthly in arrears. We initially issued shares of Series B Preferred Stock in July 2020, and began paying dividends thereon beginning with the month ended July 31, 2020.We may, at our option, redeem the Series B Preferred Stock, in whole or in part, by paying $25.00 per share, plus any accrued and unpaid dividends to the date of redemption and a redemption premium. The redemption premium was initially set at 10% of the $25.00 liquidation preference per share on July 16, 2020, and decreases by 2% per year until it terminates on the five-year anniversary of the initial issuance date (July 16, 2025).The Series B Preferred Stock is currently listed for trading on NASDAQ under the symbol “FATBP.” On June 9, 2021, the last reported sale price of the Series B Preferred Stock on NASDAQ was $24.4267 per share.Fog Cutter Holdings, LLC, our majority stockholder, controls approximately 57.5% of the combined voting power of our common stock, par value $0.0001 per share (which we refer to as “Common Stock”), and we are therefore a “controlled company” as defined under NASDAQ Marketplace Rules. However, we do not currently intend to rely on the controlled company exemptions provided under NASDAQ Marketplace Rules.Investing in the Series B Preferred Stock involves risks. See “Risk Factors” beginning on page 12 of this prospectus to read about important factors you should consider before buying the Series B Preferred Stock.Neither the U.S. Securities and Exchange Commission (which we refer to as the “SEC”) nor any state securities commission has approved or disapproved these securities or determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.Per Share (1)TotalInitial public offering price $ $Underwriting discounts (2)$$Proceeds to FAT Brands Inc. (before expenses) (3)$$(1) Per share price represents the offering price for one share of Series B Preferred Stock.(2) We refer you to “Underwriting” beginning on page 50 for additional information regarding underwriters’ compensation.(3) We estimate that our total expenses for the offering will be approximately $300,000 in addition to underwriting discounts.We have granted the underwriters a 45-day option to purchase up to additional shares of Series B Preferred Stock to cover over-allotments, if any. The underwriters expect to deliver the Series B Preferred Stock to purchasers on or about 17 June , 2021.ThinkEquitya division of Fordham Financial Management, Inc
  • R
    Robert
    They should double or triple the dividend
    Bullish
  • 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?
  • D
    David
    Why did they price the additional shares of series B pref. stock So Stinkin Cheap.?? Management stinks.! They could have Easily priced these additional shares more closely to market prices (which were like 24 to 24.50). They could have priced these shares at say 22 or 23.!!!
  • E
    Echo2k
    Going up
  • g
    greg
    when is the ex date on the preferred stock?
  • r
    ray
    I ATTEMPTED TO GET INFORMATION ON FCCG AND HAVE BEEN STONEWALLED. I AM A SHAREHOLDER. MY BEST GUESS IS THAT FOGCUTTER HAS BETWEEN 10 AND 11 MILLION SHARE OUTSTANDING AND OWNS 8 MILLION SHARES OF FAT WHICH SHOULD GENERATE $4 MILLION IN DIVIDENDS TO FGCC. GIVEN FCCG HAS 71 MILLION IN TAX LOSS CARRY FORWARDS, THESE DIVIDENDS SHOULD BE TAX FREE TO FGCC. SINCE WEIDERHORN OWNS AROUND 37% OF FCCG, THE MOST TAX EFFICIENT WAY FOR HIM TO GET MONEY WOULD BE TO DECLARE DIVIDENDS ON FCCG. THIS WOULD GIVE HIM OVER $1 MILLION/YEAR ASSUMING FAT PAYS IT'S DIVIDEND. I'M GUESSING THE BOOK VALUE OF FCCG IS SIGNIFICANTLY HIGHER THAN IT'S CURRENT PRICE.

    THIS IS PURELY MY GUESS AS TO THE SITUATION.
  • C
    Christian
    I am intrigued by the warrants (FATBW). They were issued in July with each warrant having the right to buy 1 share of common subject to adjustments. I am not sure if the warrant will now purchase 1 share of common plus roughly .23 shares of the preferred or if there will be an adjustment to the exercise price for the distribution. Either way the warrant's value is something like $4.5 and selling for $3. (Exercise cost $5 would receive 1 common share at $5.80 value plus .23 preferred share worth $3.68 (16x.23).
  • S
    Steve
    is today ex-div date? i see the stock is down by 4% before the market opens but it seems too little since div is about $4?
  • J
    Jetson
    Has anyone seen the special div show up in their accounts yet?
  • A
    Alexander
    Who bought at 12?!
    Bearish
  • T
    Tina
    Can someone explain the dividend pay out? Will it be paid out in shares?
  • w
    walter
    We’re growing and up is the only way !!!
  • 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.
  • m
    mike
    CEO just got a huge bonus 7mm x .13 = $910,000. All for refinancing.
  • w
    waterman
    FAT is already down 40% from today's pre-market high $11.7, and it is still trending downward. Creating more Geniuses (GNUS) and Kodak Moment (KODK).
  • B
    Brian
    almost lunch time, gonna get a fat burger, this stock making me hungry.