BEVERLY HILLS, CA – Fat Brands Inc. (NASDAQ:FAT), a global franchising company that specializes in retail eating places, has declared a monthly cash dividend for its 8.25% Series B Cumulative Preferred Stock. The dividend, announced by the Board of Directors on Monday, is set at $0.171875 per share for the month ending September 30, 2024.
Shareholders of record as of the close of business on October 10, 2024, will be eligible to receive the dividend, which is payable on October 21, 2024. This declaration reflects the company's commitment to deliver shareholder value through consistent returns.
The declaration comes amidst a period of strategic growth for Fat Brands, which has been expanding its portfolio of restaurant brands across various markets. The company's business model focuses on leveraging its established brands to generate recurring revenue streams, a strategy that has been well received by investors.
The news of the dividend payment is based on a press release statement and is in accordance with the company's policy of distributing dividends to preferred stockholders. Fat Brands has been listed on The Nasdaq Stock Market LLC, where its Class A Common Stock, Class B Common Stock, Series B Cumulative Preferred Stock, and Warrants to purchase Class A Common Stock are traded under the ticker symbols FAT, FATBB, FATBP, and FATBW respectively.
Fat Brands' financial decisions, including dividend declarations, are closely watched by investors as indicators of the company's financial health and its ability to generate cash flow. This latest dividend announcement is seen as a positive sign of the company's financial management and its ability to maintain a steady stream of income for its investors.
In other recent news, FAT Brands Inc. has been making significant strides in its business operations. The company recently announced a monthly cash dividend for its Series B Cumulative Preferred Stock, a move that showcases its commitment to returning value to its shareholders. The declared dividend is $0.171875 per share for the calendar month ending August 31, 2024.
In terms of earnings and revenue, FAT Brands reported a substantial increase in total revenue by 42.4% to $152 million, and a rise in system-wide sales by 7.3% to $614.7 million compared to the same period last year. Despite reporting a net loss of $39.4 million for the quarter, the company is optimistic about its future prospects, particularly in the polished casual segment.
As part of its growth strategy, FAT Brands is planning to open 120 new units this year, primarily focusing on the polished casual segment. The company is also considering acquisitions in categories such as salad, sandwich, and coffee brands. This expansion plan is a clear indication of FAT Brands' commitment to diversifying its portfolio and adapting to market demands.
Notably, the company's Georgia-based manufacturing facility contributed $3.8 million to adjusted EBITDA in Q2, a 9.3% increase from last year. These recent developments underscore FAT Brands' ongoing efforts to position itself for future growth with a strong leadership team and brand management platform.
InvestingPro Insights
In light of Fat Brands Inc.'s recent dividend announcement, a deeper look at the company's financial situation through InvestingPro data and tips can offer a more comprehensive understanding of its position. As of the last twelve months leading up to Q2 2024, Fat Brands has exhibited a substantial revenue growth of 36.36%, which is a promising indicator of the company's expansion efforts and market reception. This growth is further accentuated by a quarterly revenue increase of 42.41% for Q2 2024.
However, the company is facing challenges, as highlighted by an InvestingPro Tip indicating that Fat Brands operates with a significant debt burden. Additionally, the company's current valuation implies a poor free cash flow yield, which could be a concern for investors looking for strong cash returns on their investment. Despite these challenges, the company has managed to raise its dividend for 3 consecutive years, showcasing a commitment to delivering shareholder value amidst its growth initiatives.
With a market capitalization of $81.66M and a notable dividend yield of 11.79% as of the data from 2024, Fat Brands stands out for its ability to provide significant returns to shareholders. Nonetheless, the InvestingPro platform lists several additional tips for Fat Brands, providing a more nuanced view of the company's financial health and investment potential. For investors interested in exploring these insights further, the full list of tips is available on the InvestingPro platform.
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