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Fat Brands - FAT STOCK NEWS

Welcome to our dedicated page for Fat Brands news (Ticker: FAT), a resource for investors and traders seeking the latest updates and insights on Fat Brands stock.

Overview

FAT Brands Inc. is a global multi-brand restaurant franchising company that expertly develops, markets, and acquires a diversified portfolio of restaurant concepts. Operating within the realms of restaurant franchising and brand management, the company delivers a comprehensive menu of concepts that span quick service, fast casual dining, and casual dining segments. Its extensive network of franchisees benefits from a robust system that integrates multi-channel marketing, operational support, and streamlined business processes, ensuring franchisees are well-supported as they build successful local businesses.

Business Model and Operations

The company primarily functions as a franchisor, generating revenue through initial franchise fees and ongoing royalties, although it does maintain select corporate-owned locations. FAT Brands Inc. leverages its in-house support teams that specialize in operations management, construction oversight, purchasing, and design, all of which are critical for maintaining brand standards and consistency. This strategic alignment of diverse restaurant concepts serves to diversify revenue streams and mitigate market-specific risks while offering franchisees the opportunity to expand their portfolios across multiple dining segments.

Brand Portfolio and Market Position

FAT Brands Inc. is synonymous with a variety of well-established restaurant concepts. With a portfolio that includes brands in categories ranging from quick service to casual dining, the company has established significant competitive advantages in terms of market reach and consumer appeal. The operational synergy across different brands allows for a cross-leveraging of resources and expertise, fostering an environment where franchisees can benefit from shared best practices in areas such as operational efficiencies, marketing strategies, and supply chain management.

Operational Excellence and Franchise Support

One of the core strengths of FAT Brands Inc. lies in its comprehensive franchise support system. The company’s dedicated departments—spanning kitchen design, architecture, training, logistics, and marketing—ensure that franchisees have access to extensive resources and an experienced team dedicated to achieving operational excellence. This all-encompassing approach not only assists in maintaining consistency across various brands but also underpins the company’s broader strategy of sustainable growth and business diversification.

Competitive Landscape

Operating in a highly competitive industry, FAT Brands Inc. differentiates itself through an integrated business model that offers tailored support and a diversified portfolio of restaurant concepts. Key competitors in the restaurant franchising space might include other multi-brand portfolios and regional players; however, FAT Brands Inc.'s emphasis on strategic acquisitions and robust in-house support has solidified its market position. This model equips the company to navigate the complexities of various market segments and adapt its offerings to both local and global consumer trends.

Industry-Specific Insights

For investors and industry analysts, understanding FAT Brands Inc. involves examining how the company’s operational strategy is built upon detailed market research, strategic brand positioning, and a commitment to operational excellence. The multi-brand strategy allows the company to capture a wide array of consumer preferences, reducing over-dependence on any single economic segment. By focusing on essential industry best practices such as quality assurance, consistency, and a strong franchising model, the company continues to maintain a competitive foothold in the restaurant franchising space.

Summary

FAT Brands Inc. exemplifies a carefully structured approach to restaurant franchising. Its strategic development, acquisition, and comprehensive support systems across a varied portfolio of restaurant concepts create resilient business operations. This detailed operational framework and its cross-brand synergies ensure that the company remains a significant participant in the broader restaurant franchising industry, offering franchisees a valuable combination of entrepreneurial freedom and corporate support.

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FAT Brands Inc. (NASDAQ: FAT) has announced a cash dividend of $0.13 per share for the third quarter of fiscal 2021. This dividend applies to both Class A and Class B common stock, with a payment date of September 15, 2021 for shareholders on record as of September 6, 2021. Future dividends will depend on the company's operational results and financial condition. FAT Brands, with a portfolio of 14 restaurant brands, franchises around 2,000 units globally, highlighting its strong position in the franchising market.

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FAT Brands reported a significant 167% increase in total revenue to $8.3 million for Q2 2021, compared to $3.1 million in Q2 2020. The company attributes this growth to the acquisition of Johnny Rockets and recovery from COVID-19 impacts. System-wide sales rose by 201.9% year-over-year. However, the net loss widened to $5.9 million or $0.48 per share. The company completed the acquisition of Global Franchise Group for $442.5 million, expanding its portfolio to over 2,000 stores worldwide, with plans for future growth and improved EBITDA projections.

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FAT Brands Inc. (NASDAQ: FAT) will hold a conference call to discuss its second quarter 2021 financial results on August 5, 2021, at 5:00 PM ET. A press release with the financial results will be issued prior to the call. Interested participants can dial 1-800-231-0316 in the U.S. or 1-314-696-0504 internationally to access the call, with a replay available until August 12, 2021. The call will be hosted by Andy Wiederhorn, CEO, and Ken Kuick, CFO.

FAT Brands operates 14 restaurant concepts globally, including Fatburger and Johnny Rockets, and franchises approximately 2,000 units.

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FAT Brands has completed its acquisition of Global Franchise Group for $442.5 million, enhancing its franchised restaurant units to over 2,000 worldwide. This deal adds five brands, including Round Table Pizza and Great American Cookies, and is projected to boost annual EBITDA by approximately $40 million to $55-$60 million. Additionally, revenues could rise from $36 million to over $100 million. This marks the largest acquisition by a restaurant franchisor in 2021.

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FAT Brands has signed a franchise agreement with Red Rombo Group to open 50 co-branded Fatburger and Buffalo’s Express locations in Mexico. The first three restaurants will debut in Mexico City by year-end. This expansion represents the 14th international venture for the brand, with over 70% of Fatburger locations being co-branded. CEO Andy Wiederhorn highlighted the growing fast-casual market in Mexico and expressed commitment to further global expansion. The co-branded model has successfully launched in countries like Singapore and France, enhancing the brand's international footprint.

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FAT Brands Inc. has announced the pricing of its $350 million FGFG Series 2021-1 Fixed Rate Asset-Backed Notes, marking its largest securitization to date. The proceeds will finance the acquisition of Global Franchise Group from Serruya Private Equity, Inc. and Lion Capital LLP. The notes carry a 6.81% fixed interest rate.

CEO Andy Wiederhorn stated that the acquisition will enhance their strategy of integrating GFG brands and achieving combined EBITDA targets. Jefferies acted as the sole underwriter for this transaction.

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FAT Brands has announced its acquisition of Global Franchise Group for $442.5 million in a mix of cash and stock. This deal brings five restaurant brands, including Round Table Pizza and Great American Cookies, into FAT's portfolio, expanding its reach to over 2,000 restaurants with system-wide sales of approximately $1.4 billion. The acquisition is expected to enhance annual EBITDA by $40 million, driven by synergies and recovery from COVID-19. The transaction is set to close by the end of July 2021, pending regulatory approval.

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FAT Brands Inc. (NASDAQ: FAT, FATBP, FATBW) has successfully closed its public offering of 460,000 shares of 8.25% Series B Cumulative Preferred Stock at $20.00 per share, generating gross proceeds of $9,200,000. This includes the full exercise of the underwriter’s option for an additional 60,000 shares. The capital is intended for general corporate purposes and potential acquisitions. The offering was managed by ThinkEquity and follows a registration statement effective from June 17, 2021.

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FAT Brands Inc. (NASDAQ: FAT, FATBP, FATBW) has priced an underwritten public offering of 400,000 shares of 8.25% Series B Cumulative Preferred Stock at $20.00 each, aiming for gross proceeds of $8 million. The underwriters hold a 45-day option for an additional 60,000 shares for over-allotments. The offering is set to close on June 22, 2021, pending customary conditions. Proceeds will support general corporate purposes and potential acquisitions, enhancing growth opportunities for the company.

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FAT Brands Inc. (NASDAQ: FAT) announced its participation in Roth’s 7th Annual Virtual London Conference, scheduled for June 21-23, 2021. Andy Wiederhorn, President and CEO, will conduct virtual meetings with investors during this event. FAT Brands is known for its global franchising operations, owning nine restaurant brands, including Fatburger and Johnny Rockets, and franchises approximately 700 units worldwide.

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FAQ

What is the current stock price of Fat Brands (FAT)?

The current stock price of Fat Brands (FAT) is $2.8 as of April 1, 2025.

What is the market cap of Fat Brands (FAT)?

The market cap of Fat Brands (FAT) is approximately 49.3M.

What is the core business of FAT Brands Inc.?

FAT Brands Inc. is a global multi-brand restaurant franchising company that develops, markets, and acquires various restaurant concepts in quick service, fast casual, and casual dining sectors.

How does FAT Brands Inc. generate revenue?

The company primarily earns revenue through franchise fees and royalties from its network of franchisees, while also maintaining select corporate-owned locations.

What types of restaurant concepts are included in its portfolio?

Its portfolio spans a range of restaurant concepts including quick service, fast casual dining, and casual dining, ensuring a diversified presence in the restaurant industry.

How does FAT Brands Inc. support its franchisees?

The company provides extensive operational support through dedicated teams in areas such as construction, logistics, marketing, training, and design, empowering franchisees to succeed.

What competitive advantages does the company have?

FAT Brands Inc. differentiates itself with a diversified multi-brand strategy, enhanced resource sharing, and comprehensive in-house support that drives operational excellence and market adaptability.

How does the company manage brand consistency across its concepts?

Through robust operational frameworks and support systems, including specialized departments that oversee architecture, kitchen design, and marketing, the company ensures high quality and uniformity across all brands.

In what regions does FAT Brands Inc. operate?

The company has a significant operational presence in the United States while also expanding its footprint globally, operating across various markets with its diversified portfolio.

How does FAT Brands Inc. position itself in the competitive restaurant franchising market?

By leveraging strategic acquisitions and comprehensive operational support, the company maintains resilience and adaptability in a competitive industry, enabling its franchisees to capture varied consumer preferences.
Fat Brands

Nasdaq:FAT

FAT Rankings

FAT Stock Data

49.29M
5.57M
69.13%
7.88%
0.76%
Restaurants
Retail-eating Places
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United States
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