FAT Brands Announces Confidential Submission of Registration Statement for Twin Peaks
FAT Brands (NASDAQ: FAT) has confidentially submitted a registration statement to the SEC to make its Twin Peaks and Smokey Bones units standalone public companies. This move is still subject to various conditions, including SEC approval and the FAT Brands board's final approval. FAT Brands is a global franchising company owning 18 restaurant brands and over 2,300 units worldwide. Twin Peaks, a sports lodge restaurant with nearly 115 locations, offers made-from-scratch food and a sports-centric dining experience.
- FAT Brands aims to make Twin Peaks and Smokey Bones standalone public companies, potentially increasing their market visibility and valuation.
- FAT Brands owns 18 diverse restaurant brands, providing a broad revenue base and reducing risk.
- The company operates over 2,300 units globally, showcasing strong market presence and operational scale.
- Twin Peaks has nearly 115 locations in the US and Mexico, indicating a significant market footprint.
- The completion of the registration process for Twin Peaks and Smokey Bones is subject to SEC approval and FAT Brands board approval, introducing uncertainty.
- This press release does not provide specific financial data, leaving investors without key performance insights for decision-making.
Insights
FAT Brands' decision to confidentially submit a registration statement for Twin Peaks and Smokey Bones to become a standalone public reporting company is significant. This move can unlock shareholder value by creating a pure-play investment opportunity focused on these brands.
From a financial perspective, spin-offs often result in more focused management and operational efficiencies. Investors should monitor the performance metrics of Twin Peaks and Smokey Bones independently, as these could reveal their true inherent value. Additionally, the potential standalone status might attract a different investor base looking for specific exposure to these brands.
For FAT Brands, this could mean a streamlined portfolio, which could help them better allocate resources and capital to their remaining brands. However, the market reception to the new entity's public debut will be crucial. If investors perceive the standalone entity as undervalued, it could potentially reflect positively on FAT Brands' stock due to its remaining stake.
Rating: 1
For retail investors, the market potential of the restaurant sector, particularly in the sports lodge niche that Twin Peaks occupies, offers an intriguing opportunity. The restaurant industry has been undergoing a shift, with consumers increasingly favoring unique dining experiences and high-quality food. Twin Peaks' focus on providing a distinctive sports lodge atmosphere with high food quality suggests it could tap into this trend successfully.
Moreover, the expansion of Twin Peaks’ locations, nearly reaching 115 establishments, indicates a robust growth trajectory. Investors should consider the scalability and geographic expansion plans post-spin-off. Market dynamics, such as consumer spending trends and inflationary pressures on food costs, should also be monitored, as these could impact profitability.
Additionally, the historical performance of Twin Peaks within FAT Brands’ portfolio could be indicative of its standalone potential. Evaluating comparable enterprises in the sports dining sector could provide further insights into the expected valuation and market positioning.
Rating: 1
LOS ANGELES, May 14, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., (NASDAQ: FAT), a leading global franchising company and parent company of 18 iconic brands, is pleased to announce that the operating unit for its Twin Peaks and Smokey Bones restaurant brands has confidentially submitted a registration statement to the Securities and Exchange Commission to become a standalone public reporting company.
Completion of the potential transaction remains subject to various conditions, including effectiveness of the registration statement and final approval of the board of directors of FAT Brands Inc. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
About FAT (Fresh. Authentic. Tasty.) Brands
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
About Twin Peaks
Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks is rapidly approaching 115 locations in the US and Mexico. Twin Peaks is the ultimate sports lodge featuring made-from-scratch food and the coldest beer in the business, surrounded by scenic views and wall-to-wall TVs. At every Twin Peaks, guests are immediately welcomed by a friendly Twin Peaks Girl and served up a menu made for MVPs. From its smashed and seared-to-order burgers to its in-house smoked brisket, and wings, guests can expect menu items that satisfy every appetite. To learn more about franchise opportunities, visit twinpeaksfranchise.com. For more information, visit twinpeaksrestaurant.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results, including the consummation of the potential transaction, to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the documents we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these risks, uncertainties and contingencies. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.
Investor Relations:
ICR
Michelle Michalski
IR-FATBrands@icrinc.com
646-277-1224
Media Relations:
FAT Brands Inc.
Erin Mandzik
emandzik@fatbrands.com
860-212-6509
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FAQ
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