LOS ANGELES - FAT Brands Inc. (NASDAQ: FAT), the parent company of multiple restaurant chains, announced today the appointment of financial veteran Jordan Chirico as Executive Vice President and Head of Debt Capital Markets. Chirico, with a background spanning nearly two decades on Wall Street, will oversee the company's $1.2 billion Whole Business Securitization portfolio and other debt-related strategies.
Chirico's career includes significant tenures in structured finance at institutions such as Bank of America, Robert W. Baird, and Credit Suisse. Later, he transitioned to asset management, holding senior roles at Robert W. Baird, Brigade Capital Management, and 3|5|2 Capital.
Rob Rosen, Co-CEO of FAT Brands, expressed confidence in Chirico's capabilities to strengthen the company's balance sheet and enhance financing efficiency. This move comes as FAT Brands aims to build upon its status as a major player in the U.S. restaurant industry.
FAT Brands has been expanding its portfolio, which currently encompasses 18 brands, including Round Table Pizza®, Fatburger, and Johnny Rockets, with over 2,300 units globally. The hiring of Chirico is part of the company's strategy to support continued growth and market presence.
The information for this article is based on a press release statement from FAT Brands.
In other recent news, FAT Brands Inc. 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 seen as a strategic effort to enable the Twin Peaks and Smokey Bones brands to operate independently.
However, the successful completion of this transaction 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.
On a different note, FAT Brands is facing legal challenges after being indicted by the U.S. Department of Justice for alleged violations of the Sarbanes-Oxley Act. The charges relate to unauthorized credit extensions made to its former CEO, Andrew Wiederhorn. The company has acknowledged the charges and is currently assessing them.
In terms of expansion, FAT Brands has announced the opening of a new Hurricane Grill & Wings location at Six Flags (NYSE:SIX) Great Escape Lodge in Queensbury, New York. This move marks the first Hurricane Grill & Wings venue in upstate New York and represents the brand's continued partnership with Six Flags Entertainment Corporation.
Finally, FAT Brands has released its financial results for the first quarter of 2024, showcasing a significant increase in total revenue and system-wide sales. Despite these gains, FAT Brands faced a net loss of $38.3 million for the quarter. The company is executing a multifaceted strategy involving organic growth, strategic acquisitions, and enhanced production capabilities at its Georgia manufacturing facility to drive future expansion.
InvestingPro Insights
As FAT Brands Inc. (NASDAQ: FAT) welcomes Jordan Chirico to lead its debt capital markets, investors may find it crucial to consider the company's financial health and market performance. According to InvestingPro data, FAT Brands has a market capitalization of 86.68 million USD and has seen a notable revenue growth of 26.77% over the last twelve months as of Q1 2024. This growth is further highlighted by a quarterly revenue increase of 43.78% in Q1 2024, demonstrating the company's expanding market presence.
Despite these positive revenue trends, the company's performance metrics reflect some challenges. The P/E ratio stands at -0.82, adjusted for the last twelve months as of Q1 2024, indicating that the company is not currently profitable. This aligns with an InvestingPro Tip suggesting that analysts do not anticipate FAT Brands will be profitable this year. Additionally, the company's stock has experienced significant volatility, with a 1-month price total return of -12.9% and a 3-month price total return of -29.52%, trading near its 52-week low.
On a brighter note, FAT Brands has raised its dividend for 3 consecutive years, boasting a high dividend yield of 10.92%, which may appeal to income-focused investors. This is a key InvestingPro Tip that underscores the company's commitment to returning value to shareholders despite the volatility in its stock price.
For investors seeking a deeper analysis of FAT Brands, additional InvestingPro Tips are available, offering insights into the company's financials and market performance. There are 15 more tips to explore on InvestingPro, which you can access with a special offer. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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