Welcome to our dedicated page for Franchise Group news (Ticker: FRG), a resource for investors and traders seeking the latest updates and insights on Franchise Group stock.
Franchise Group, Inc. (NASDAQ: FRG) is a diversified and rapidly growing holding company with a focus on acquiring and operating franchise businesses. Founded in 1997, Franchise Group currently owns and operates a diverse portfolio of brands across various sectors, including retail, tax preparation, and wellness. The company is renowned for its strategic acquisitions and robust operational capabilities, which enable it to enhance the growth and profitability of its subsidiaries.
One of Franchise Group's most notable subsidiaries is Liberty Tax, a leading tax preparation service provider. Established by tax industry expert John Hewitt, Liberty Tax has rapidly expanded its footprint with over 4,000 offices in the U.S. and Canada, prepared nearly 16 million individual tax returns, and supported a network of over 30,000 tax preparers. The company is recognized for its unique marketing strategies, including the iconic Liberty wavers, and its commitment to franchisee success.
Another significant brand under Franchise Group's umbrella is The Vitamin Shoppe, a global, omnichannel specialty retailer dedicated to providing nutritional solutions. With over 690 retail stores and a substantial online presence, The Vitamin Shoppe offers a wide array of vitamins, minerals, sports nutrition, and wellness products, including proprietary brands like BodyTech® and plnt®.
Franchise Group's recent achievements include the expansion of PHOCUS, a mental acuity beverage, through an exclusive partnership with The Vitamin Shoppe. This collaboration, highlighted by the introduction of a new pineapple flavor, underscores the company's commitment to innovation and quality. PHOCUS, co-owned by Grammy-nominated artist Jack Harlow, stands out in the functional beverages market with its clean and effective formula, featuring ingredients like L-Theanine for balanced alertness.
Financially, Franchise Group remains robust, consistently delivering strong revenue growth and maintaining a healthy balance sheet. The company's strategic acquisitions and partnerships, such as the recent collaboration between Gorilla Mind and The Vitamin Shoppe, continue to drive its market presence and consumer engagement.
Overall, Franchise Group's diversified portfolio, strategic growth initiatives, and focus on operational excellence position it as a significant player in the franchise industry, continually enhancing value for shareholders and delivering top-tier products and services to consumers.
Franchise Group reported its Q4 and full-year 2020 results, revealing a total revenue of $496.3 million for Q4 and $2.15 billion for the full year. The company faced a net loss of $4.2 million or $0.12 per share in Q4, while net income for the year was $25.1 million or $0.70 per share. Adjusted EBITDA stood at $28.8 million for Q4 and $227.6 million for the year. For 2021, Franchise Group anticipates revenue between $3.0 billion and $3.1 billion and net income of at least $40 million or $1.00 per share.
Franchise Group Completes $1.3 Billion Refinancing
Franchise Group, Inc. (NASDAQ: FRG) has successfully completed its acquisition of Pet Supplies Plus (PSP) for $700 million, funded by $1.3 billion in new debt financing. This financing also refinances existing loans, enhancing Franchise Group's capital structure. CEO Brian Kahn expressed optimism about PSP’s unit economics and growth potential, which are expected to strengthen Franchise Group's market position and diversification strategy.
Franchise Group (NASDAQ: FRG) will announce its fourth quarter and full year 2020 financial results on March 10, 2021, followed by a conference call at 4:30 PM ET to discuss the results and provide a 2021 outlook. The call can be accessed via webcast and telephone, with details available on their website. Additionally, Franchise Group will participate in the UBS and D.A. Davidson virtual conferences on March 9 and 11, 2021, respectively. The company operates over 4,000 locations across various brands, aiming to generate strong cash flow for shareholders.
Franchise Group, Inc. (NASDAQ: FRG) has announced a quarterly dividend of $0.375 per share, payable on or about April 15, 2021, to shareholders on record by the close of business on March 31, 2021. The company operates over 4,100 locations through various franchises, including Liberty Tax Service and The Vitamin Shoppe, aiming to generate strong cash flow for shareholders. This dividend marks a commitment to enhancing shareholder value amidst ongoing business operations.
Franchise Group, Inc. (NASDAQ: FRG) has declared a quarterly dividend of $0.46875 per share for Series A Cumulative Perpetual Preferred stockholders. The dividend is set to be paid on or about April 15, 2021, to those who hold the stock as of the close of business on March 31, 2021. Franchise Group operates over 4,100 locations across various brands, including Liberty Tax Service and The Vitamin Shoppe, focusing on strong cash flow generation.
Franchise Group has entered into a definitive agreement for its Liberty Tax business to merge with NextPoint Acquisition Corp., part of a diversified financial services platform. The deal will yield over $240 million, comprising $182 million in cash and $61 million in stock. The transaction aligns with Franchise Group's strategy to transition Liberty from a seasonal tax service to a year-round financial products provider. Expected completion is in the second quarter of 2021, subject to regulatory approvals.
The Vitamin Shoppe has announced a partnership with Kim Lien Group to launch and operate stores in Vietnam. The first outlet opened this month in Hanoi, measuring 1,500 square feet, showcasing various nutritional products from The Vitamin Shoppe's proprietary brands. A second Hanoi store is set to open soon, with plans for wholesale distribution targeting pharmacies, gyms, and spas. This marks The Vitamin Shoppe's first country license agreement in Asia, expanding its international presence.
Franchise Group (NASDAQ: FRG) has announced a definitive agreement to acquire Pet Supplies Plus (PSP) in an all-cash transaction valued at approximately $700 million. The acquisition is projected to boost Franchise Group's earnings and revenue, with anticipated systemwide annual revenue exceeding $3.6 billion. PSP, boasting over 500 locations, contributes a diversified revenue model and strong unit economics. The deal is expected to close in March 2021, providing Franchise Group with an estimated $100 million in net present value tax benefits.
Franchise Group announced the closing of its underwritten offering of 7.50% Series A Cumulative Perpetual Preferred Stock at $25.20 per share. The underwriters partially exercised their option, purchasing an additional 314,934 shares, raising approximately $7.7 million. Total shares sold in this offering reached 3,291,125, yielding about $79.5 million in net proceeds. The funds are aimed at general corporate purposes, including future acquisitions. Dividends are set at $1.875 per year, payable quarterly starting April 15, 2021.
Franchise Group (NASDAQ: FRG) announced a public offering of 2,976,191 shares of its 7.50% Series A Cumulative Perpetual Preferred Stock, priced at $25.20 per share, with gross proceeds estimated at $75 million. The offering closes around January 15, 2021, and includes a 30-day option for underwriters to purchase an additional 446,428 shares. Proceeds will support general corporate purposes, including potential acquisitions. The offering is a reopening of stock initially issued on September 18, 2020, and shares will be consolidated with existing stock.
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