BEVERLY HILLS, CA - FAT Brands Inc., a company known for its ownership of several restaurant chains, has declared a monthly cash dividend for its Series B Cumulative Preferred Stock. The announcement, detailed in a recent SEC filing, states that the Board of Directors approved a dividend of $0.171875 per share for the month ending July 31, 2024.
The dividend is set to be distributed on August 20, 2024, to stockholders of record as of the close of business on August 9, 2024. This declaration reflects the company's commitment to providing returns to its preferred stockholders, who hold shares traded on The Nasdaq Stock Market under the ticker symbol FATBP.
The preferred stock, which has a par value of $0.0001 per share, carries an 8.25% annual dividend, paid monthly. This type of stock typically offers a fixed dividend and has priority over common stock in the event of a liquidation. The dividend payment is a routine financial operation for the company, aligning with its fiscal policies and shareholder agreements.
FAT Brands Inc., incorporated in Delaware and headquartered in Beverly Hills, operates under the retail-eating places industry category. The company's portfolio includes a variety of casual and fast-casual dining brands, expanding its footprint in the food industry.
The details of this financial event are based solely on the information provided in the SEC filing by FAT Brands. The filing ensures transparency and adherence to regulatory requirements, providing investors and the public with essential information regarding the company's financial decisions. The declaration of the dividend is a standard procedure for the company and is reported in accordance with SEC regulations.
In other recent news, FAT Brands Inc. has witnessed significant developments on multiple fronts. The company recently reported a substantial increase in total revenue and system-wide sales for the first quarter of 2024, despite a net loss of $38.3 million. Key contributors to the revenue growth included the acquisition of the Smokey Bones restaurant chain and new restaurant openings.
FAT Brands also announced the appointment of financial veteran Jordan Chirico as Executive Vice President and Head of Debt Capital Markets. Chirico will oversee the company's $1.2 billion Whole Business Securitization portfolio and other debt-related strategies, aiming to strengthen the company's balance sheet and enhance financing efficiency.
On the legal front, FAT Brands is assessing charges by the U.S. Department of Justice relating to unauthorized credit extensions made to its former CEO, Andrew Wiederhorn. The company has acknowledged the charges and is currently assessing them.
In a strategic move, FAT Brands has confidentially filed a registration statement with the Securities and Exchange Commission for the potential spin-off of its Twin Peaks and Smokey Bones restaurant brands into a separate public entity. This move is contingent on several conditions, including the SEC's declaration that the registration statement is effective and the final approval from FAT Brands' board of directors.
Moreover, FAT Brands has expanded its presence by opening a new Hurricane Grill & Wings location at Six Flags (NYSE:SIX) Great Escape Lodge in Queensbury, New York. This marks the first Hurricane Grill & Wings venue in upstate New York and represents the brand's continued partnership with Six Flags Entertainment Corporation.
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