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FAT Brands Inc. (FAT)
NasdaqCM - NasdaqCM Real Time Price. Currency in USD
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151 reactions on $FAT conversation
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Anyone read / look at the recent 8K. any thoughts?? Pref shares increased from 4.9Million up to 9Million shares. etc etc
Don't listen to John (below) he thinks YGYIP is a great yield/investment.... in just over 2 months (July 6th to Sptember 17 2021) that investment has cratered down negative 57%.!!! yeah, investors have lost that much of their principal value in just over two months. (stay away from John & YGYIP)
Any Thoughts About: the company increasing the quantity of shares it can issue (preferred) from 5 million up to 15 million.?? While not immediately effective, what seems to be their financial approach.??
As far as preferred stocks go, there's nothing like the great yields of FATBP and YGYIP!
Can someone explain the special dividend?
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.
when is the ex date on the preferred stock?
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
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
This company does not do well enough to pay a dividend… run!
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?
this is not good - looks like the management is loading up with debt to the max.
what's next? secondary offering on stocks?
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.
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).
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?
Has anyone seen the special div show up in their accounts yet?
Who bought at 12?!
Can someone explain the dividend pay out? Will it be paid out in shares?
We’re growing and up is the only way !!!
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.
CEO just got a huge bonus 7mm x .13 = $910,000. All for refinancing.
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