FAT Brands Inc. Announces First Quarter Cash Dividend on Class A Common Stock and Class B Common Stock

Rhea-AI Summary

FAT Brands Inc. (NASDAQ: FAT) declares a cash dividend of $0.14 per share for its fiscal 2024 first quarter, payable on March 1, 2024, to holders of record as of February 15, 2024. The declaration and payment of future dividends are subject to the discretion of the Company’s Board of Directors, depending on the Company’s future results of operations, financial condition, capital levels, cash requirements, and other factors.

Insights

Financial Analyst

The declaration of a quarterly cash dividend by FAT Brands Inc. represents a direct financial return to shareholders, signaling the company's current liquidity and profitability status. Dividends are often a reflection of a company's confidence in its financial stability and ongoing cash flows. The announcement of a $0.14 per share dividend could be seen as a positive indicator to investors, suggesting that the company's earnings are robust enough to support a distribution of profits.

However, the forward-looking statement regarding the discretion of future dividends highlights the uncertainty and potential variability in the company's financial and operational performance. Investors should consider the implications of this variability when assessing the sustainability of dividend payments. The reliance on future results of operations and financial condition indicates that dividends are not guaranteed and can fluctuate with the company's performance.

Market Research Analyst

The restaurant industry is highly competitive and FAT Brands' portfolio of diverse restaurant concepts positions it to cater to various consumer tastes and preferences. The dividend announcement could be perceived as a sign of operational efficiency and strategic management within this sector. It is important to analyze market trends, consumer spending patterns and industry competition to understand the potential long-term viability of FAT Brands' dividend policy.

Investors should also consider the impact of external economic factors such as inflation, changes in disposable income and shifts in dining habits, as these could influence the company's performance and, consequently, its ability to maintain or increase dividend payments.

Economist

From an economic perspective, the payment of dividends by FAT Brands Inc. can be an indicator of the broader economic environment. In a strong economy, consumer spending on dining out tends to increase, which can positively affect the revenues of restaurant franchising companies. Conversely, in an economic downturn, discretionary spending on eating out is often one of the first expenses consumers cut back on.

The timing and consistency of dividend payments can thus provide insights into economic cycles and consumer confidence. Additionally, the company's ability to pay dividends amidst various economic conditions may reflect its resilience and adaptability to changing economic landscapes.

LOS ANGELES, Jan. 12, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT), a leading global franchising company and parent company of iconic brands including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Twin Peaks, Fazoli’s, Smokey Bones and 11 other restaurant concepts, announced today that its Board of Directors has declared the Company’s fiscal 2024 first quarter cash dividend of $0.14 per share on each outstanding share of Class A common stock and Class B common stock. The dividend is payable on March 1, 2024 to holders of record of Class A common stock and Class B common stock as of the close of business on February 15, 2024.

The declaration and payment of future dividends, as well as the amounts thereof, are subject to the discretion of the Company’s Board of Directors. The amount and size of any future dividends will depend upon the Company’s future results of operations, financial condition, capital levels, cash requirements and other factors. There can be no assurance that the Company will declare and pay dividends in future periods.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands Inc. (NASDAQ: FAT) (the Company) is a leading global franchising company that strategically acquires, markets and develops quick service, fast casual and casual dining restaurant concepts around the world. The Company currently owns eighteen restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Smokey Bones, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean, Ponderosa and Bonanza Steakhouses and franchises and owns over 2,300 units worldwide. For more information, please visit www.fatbrands.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 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

What is the cash dividend declared by FAT Brands Inc. for its fiscal 2024 first quarter?

FAT Brands Inc. (NASDAQ: FAT) has declared a cash dividend of $0.14 per share for its fiscal 2024 first quarter.

When is the cash dividend payable to the shareholders?

The cash dividend is payable on March 1, 2024, to holders of record as of February 15, 2024.

What factors determine the declaration and payment of future dividends by FAT Brands Inc.?

The declaration and payment of future dividends by FAT Brands Inc. are subject to the discretion of the Company’s Board of Directors and depend on the Company’s future results of operations, financial condition, capital levels, cash requirements, and other factors.