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 (NASDAQ: FRG) announced a public offering of its 7.50% Series A Cumulative Perpetual Preferred Stock, aiming to raise capital for general corporate purposes, including future acquisitions. This offering is a reopening of its original issuance from September 2020 and will consolidate with existing shares, all trading under the symbol FRGAP. Dividends of $1.875 annually will be payable quarterly starting April 15, 2021. Several firms, including B. Riley Securities and Incapital, are managing the offering, which relies on an effective shelf registration statement filed with the SEC.
Franchise Group (NASDAQ: FRG) announced its participation in two virtual conferences: the 23rd Annual ICR Conference from January 11-13, and the CJS Securities 21st Annual New Ideas for the New Year Conference on January 13. CEO Brian Kahn and EVP Andrew Kaminsky will engage in small group meetings at both events. Franchise Group operates over 4,000 locations in the U.S. and Canada, focusing on franchised and franchisable businesses, including Liberty Tax Service and The Vitamin Shoppe, aiming to generate strong cash flow for shareholders.
The Vitamin Shoppe announced its partnership with WW International, Inc. to enhance health and wellness offerings. This collaboration includes co-branded nutritional supplements and WW membership sales in over 715 retail locations. Key products like WW by the Vitamin Shoppe Daily Essentials and WW by the Vitamin Shoppe Daily Essentials + Heart Health are priced at $29.99 and $46.99, respectively. This initiative aims to support Americans seeking wellness guidance, highlighted by a study showing 63% of individuals desire assistance in achieving their health goals for 2021.
Franchise Group has completed the acquisition of FFO Home, a furniture and mattress retailer, rebranding over 30 stores in the Midwest to American Freight. This move aims to expand American Freight's market presence while preserving local jobs. The rebranded stores will offer a broader range of products, including appliances, and maintain operations during the conversion. Customers can expect affordable pricing and same-day delivery on in-stock items. A Grand Reopening is anticipated in Q1 2021.
Franchise Group, Inc. (NASDAQ: FRG) announced a quarterly dividend of $0.46875 per share for its Series A Cumulative Perpetual Preferred stockholders. This cash dividend will be paid on January 15, 2021, to those on record as of the close of business on December 31, 2020. With over 4,000 locations across the U.S. and Canada, Franchise Group manages various brands, including Liberty Tax Service and The Vitamin Shoppe, aiming for strong cash flow to benefit shareholders.
Franchise Group announced a 50% increase in its quarterly dividend, now set at $0.375 per share. This change reflects the company's strong cash flow and positive momentum heading into 2021. The dividend will be paid to shareholders on or about January 8, 2021, with a record date of December 24, 2020. CEO Brian Kahn emphasized the company's aim to distribute 25% of Adjusted EBITDA to shareholders. Franchise Group operates over 4,000 locations across various brands, demonstrating a robust operational footprint.
The Vitamin Shoppe, based in Secaucus, NJ, has launched its first proprietary CBD products under the plnt and Vthrive brands, responding to rising consumer demand for quality CBD. The offerings include tinctures and capsules available exclusively at Vitamin Shoppe locations and online, priced from $24.99 to $69.99. The products feature three potency tiers and are backed by rigorous quality assurance standards. This launch marks a significant milestone in the company's private brand expansion and aims to position The Vitamin Shoppe as a leader in CBD innovation.
Franchise Group (NASDAQ: FRG) has refranchised 47 Buddy's locations to bebe stores for $35 million, which will be used to pay down debt. This transaction is expected to reduce the company’s annual revenue by approximately $35 million and Adjusted EBITDA by about $6 million, excluding future openings by the franchisee. CEO Brian Kahn emphasized that this deal allows Franchise Group to de-lever its balance sheet while simultaneously facilitating brand growth. The company operates over 4,000 locations, focusing on increasing its portfolio of franchised businesses.
Franchise Group, Inc. (NASDAQ: FRG) has announced the acquisition of FFO Home, a furniture retailer with 31 stores across several states, as part of a Chapter 11 bankruptcy process. The transaction, expected to close by the end of 2020, will allow FFO to continue operations while receiving financial support from Franchise Group through a debtor-in-possession loan. This acquisition aims to enhance Franchise Group's footprint and integrate FFO's operations with American Freight.
Franchise Group (NASDAQ: FRG) reported a third-quarter revenue of $551 million, with a net loss of $8.6 million ($0.22 per share) and an Adjusted EBITDA of $50 million. The company generated strong comparable same-store sales growth: 15% at American Freight, 14.7% at Buddy's, and 8.6% at The Vitamin Shoppe. Franchise Group reduced its outstanding debt by $111.9 million, including retiring a $70 million term loan. For fiscal 2020, the company maintains its revenue guidance of $2.10 - $2.15 billion and expects Adjusted EBITDA to exceed $232 million.
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