In a recent development, Fat Brands Inc. has announced a monthly cash dividend for its shareholders. Today, the Board of Directors declared a dividend on the company's 8.25% Series B Cumulative Preferred Stock for the month ending November 30, 2024. The dividend amount is set at $0.171875 per share.
This dividend is scheduled to be paid on December 20, 2024, to all shareholders of record by the close of business on December 10, 2024. The announcement follows the company's commitment to delivering value to its investors, as outlined in the latest SEC filing.
Based in Beverly Hills, California, Fat Brands Inc. operates a diverse portfolio of restaurant brands internationally. The company is recognized under the SIC code 5812, which pertains to retail eating places, indicating its primary business in the foodservice industry.
Fat Brands Inc. is listed on The Nasdaq Stock Market LLC under various trading symbols, including FAT for its Class A Common Stock, FATBB for its Class B Common Stock, FATBP for its Series B Cumulative Preferred Stock, and FATBW for its Warrants to purchase Class A Common Stock.
The declaration of the dividend is a routine financial event for Fat Brands Inc. and reflects the company's ongoing financial strategies. The information provided here is based on the statement from a press release, emphasizing the company's adherence to its dividend policy and continued operations in the retail food sector.
In other recent news, Fat Brands Inc. has reported a substantial increase in Q3 2024 revenue, rising by 31.1% to $143.4 million, largely due to the acquisition of Smokey Bones. Despite the revenue growth, the company experienced a net loss of $44.8 million and a decrease in adjusted EBITDA to $14.1 million from $21.9 million year-over-year. Furthermore, the company announced a monthly cash dividend for its Series B Cumulative Preferred Stock holders at a rate of $0.171875 per share, to be paid in November 2024.
In terms of expansion, Fat Brands plans to open 40 new units in Q4 2024, with about 1,000 new units in the development pipeline, potentially adding $50 million to $60 million in annual adjusted EBITDA. However, the company encountered challenges with Smokey Bones and Fazoli's, both of which reported sales declines. In response, Fat Brands plans to re-franchise Fazoli's and convert 30 Smokey Bones locations to Twin Peaks.
Moreover, Fat Brands has set the date for its 2024 Annual Meeting of Stockholders for December 24, 2024. The company has also announced the deadline for stockholders to submit proposals for consideration. Finally, the company is undergoing debt refinancing for Twin Peaks and Fazoli's with rates that are favorable compared to the market. These are the recent developments for Fat Brands Inc.
InvestingPro Insights
Fat Brands Inc.'s recent dividend announcement aligns with its commitment to shareholder returns, as evidenced by InvestingPro data showing a significant dividend yield of 10.53%. This high yield is particularly noteworthy given the company's financial position. According to InvestingPro Tips, Fat Brands has raised its dividend for 3 consecutive years, demonstrating a consistent focus on returning value to shareholders despite operational challenges.
The company's revenue growth is a bright spot, with InvestingPro data indicating a 42.38% increase in the last twelve months as of Q3 2024. This robust growth supports the InvestingPro Tip that analysts anticipate sales growth in the current year. However, investors should note that Fat Brands operates with a significant debt burden and is quickly burning through cash, as highlighted by additional InvestingPro Tips.
For a more comprehensive analysis, InvestingPro offers 11 additional tips for Fat Brands, providing deeper insights into the company's financial health and market position. These additional tips can help investors better understand the risks and opportunities associated with Fat Brands' stock.
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