FAT Brands Portfolio Continues to Grow But FAT Stock Performance Is Volatile

Описание: FAT Brands is a multi-brand restaurant operator headquartered in Beverly Hills, California. The name represents the value the company embraces and the food that they expect to provide to customers – Fresh, Authentic, and Tasty.

FAT Brands strategically acquires, markets, and develops fast-casual and quick dining franchises around the world. The company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, 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.

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https://www.vettedbiz.com/fat-brands-...

Link to Franchise Times Article:
https://www.franchisetimes.com/franch...

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00:00 Introduction
00:24 About FAT Brands
00:56 Their 17 Restaurant Concepts
01:40 FAT Brands Franchise Opportunities
01:52 FAT Brands IPO and Market Capitalization
02:16 Global Franchise Group Purchase
02:39 FAT Brands CEO Faced Multiple Allegations
03:03 FAT Brands Franchisees
03:27 Royalties & Revenues
04:13 Conclusion

#FatBrandsPortfolioContinuesToGrow #VettedBiz

FAT Brands trades on the NASDAQ under the stock ticker, ‘FAT’. It completed its IPO on October 23, 2017, at $11.67, and it is currently $5.75 (as of April 28, 2022). Currently, it has a total market capitalization of $96.26 million. However, it is extremely volatile with a beta of 2.16. It pays a good amount of dividend to shareholders, with a dividend yield of 9.04%.

FAT BRANDS IS A YOUNG COMPANY BUT HAS DEVELOPED RAPIDLY SINCE THEN. FAT BRANDS BEGAN AS A HOLDING COMPANY FOR FATBURGER IN 2017 AND EXPANDED THROUGH THE ACQUISITION OF THE JOHNNY ROCKETS FOR $25 MILLION IN 2020.

Last year, FAT Brands purchased the Global Franchise Group. Before the acquisition, the Global Franchise Group has already operated more than 1,400 franchised and corporate stores in 14 countries. Most of the current brands under the FAT Brands umbrella came from the Global Franchise Group acquisition. Later in 2021, FAT Brands acquired Twin Peaks for $300 million.

FAT Brands is a company that focuses on restaurant franchising and has a strong pipeline for future acquisitions. FAT Brands focuses on revenue from royalties and franchise fees, rather than from company-owned or operated restaurant locations.

Beyond their current brand portfolio, FAT Brands is intended to acquire other restaurant franchise concepts that allow them to offer additional food categories and expand their geographic footprint. Additionally, FAT Brands offer its franchisees support in public relations, marketing, site selection analysis, staff training, and more. Although the franchisees appear happy with FAT Brands' support, there is a major pending issue at the top.

Besides operating the company, Andy Wiederhorn, the CEO of FAT Brands, is certainly encountering some troubles. Regarding the pending lawsuits and FBI inquiries into allegations of security and wire fraud, money laundering, and attempted tax evasion, Andy Wiederhorn denied all of the charges and looks forward to the growth of the company. Specifically, the FBI is looking for materials concerning the merger with Fog Cutter Capital Group in 2020, determining whether the transactions between these entities and other benefits received by Andy Weiderhorn or his family.

According to the Franchise Times, the lawsuit accused Mr. Wiederhorn of “running FAT Brands into the ground and bleeding it of its cash.” In 2004, the CEO spent 15 months in prison after pleading guilty to charges of paying an illegal gratuity to an associate and to filing a false tax return years ago. Controlling 55.2 percent of the voting power of FAT Brands’ common stock, Andy Wiederhorn and his sons hold executive positions in the company and receive compensation of $1.08 million, $960,000, and $740,000, respectively. The truth is still unspoken.

This video was based on an exclusive Vetted Biz analysis, click here for the full report:
https://www.vettedbiz.com/fat-brands-...

Link to Franchise Times Article:
https://www.franchisetimes.com/franch...

Want to have a franchise specialist support you day-to-day in your franchise search/ analysis? Click here for more information:
https://www.vettedbiz.com/franchise-s...