Andrew Wiederhorn, a director at Fat Brands, Inc. (NASDAQ:FAT), recently purchased 1,000 shares of the company's Class B common stock. The transaction, dated November 22, 2024, was executed at a price of $4.4992 per share, amounting to a total of $4,499. Following this acquisition, Wiederhorn holds 11,079 shares directly. Additionally, he has an indirect ownership of 707,534 shares through Fog Cutter Holdings LLC, although he disclaims beneficial ownership of these shares beyond his financial interest.
In other recent news, Fat Brands Inc. has reported a series of significant developments. The company experienced a 31.1% increase in Q3 2024 revenue, reaching $143.4 million, primarily due to the acquisition of Smokey Bones. However, it also faced a net loss of $44.8 million and saw a decline in adjusted EBITDA to $14.1 million from $21.9 million year-over-year.
Fat Brands also announced a monthly cash dividend for its Series B Cumulative Preferred Stock holders at a rate of $0.171875 per share, scheduled for payment on November 20, 2024. Additionally, the company has set the date for its 2024 Annual Meeting of Stockholders for December 24, 2024, with a deadline for stockholders to submit proposals set for November 27, 2024.
Despite facing challenges with Smokey Bones and Fazoli's, both of which reported sales declines, Fat Brands is planning to open 40 new units in Q4 2024. The company has approximately 1,000 new units in the development pipeline, potentially adding $50 million to $60 million in annual adjusted EBITDA. To address the sales declines, Fat Brands plans to re-franchise Fazoli's and convert 30 Smokey Bones locations to Twin Peaks. The company is also undergoing debt refinancing for Twin Peaks and Fazoli's with rates favorable compared to the market.
InvestingPro Insights
Andrew Wiederhorn's recent purchase of Fat Brands, Inc. (NASDAQ:FAT) shares comes at a time when the company is experiencing significant growth and facing financial challenges. According to InvestingPro data, Fat Brands has shown impressive revenue growth of 42.38% over the last twelve months as of Q3 2024, with quarterly revenue growth of 31.09% in Q3 2024. This aligns with one of the InvestingPro Tips, which indicates that analysts anticipate sales growth in the current year.
Despite the growth, Fat Brands is operating with some financial strain. The company's dividend yield stands at a substantial 10.53%, which corresponds to another InvestingPro Tip stating that the company pays a significant dividend to shareholders. However, this high yield should be viewed cautiously in light of other financial metrics.
InvestingPro Tips also reveal that Fat Brands operates with a significant debt burden and is quickly burning through cash. This financial situation is reflected in the negative operating income of -$31.96 million over the last twelve months. The company's price-to-book ratio of -0.21 further underscores the financial challenges it faces.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 11 additional InvestingPro Tips available for Fat Brands, providing a deeper understanding of the company's financial health and market position.
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