Movers and SHAKERS
FAT Brands Inc. (FAT)
FAT Brands, Fog Cutter Merger Announced; Increasing PT
FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, and acquires predominantly fast casual restaurant concepts. The company provides turkey burgers, chicken Sandwiches, chicken tenders, burgers, ribs, wrap sandwiches, and others. Its brand portfolio comprises Fatburger, Buffalo's Cafe and Express, and Ponderosa and Bonanza. The company's overall footprint covers nearly 32 countries. Fatburger generates maximum revenue for the company.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Fog Cutter Merger. On Friday, FAT Brands announced the long-waited merger with its controlling shareholder Fog Cutter Capital Group (FCCG). FCCG owns 81.16% of FAT's common shares. FAT shares closed at $7.89, or 28% higher on the news. At the onset, the merger will simplify FAT's corporate structure and eliminate limitations that have restricted FAT's ability to use common stock for acquisitions and capital raising. FCCG also holds over $100 million of NOLs that FAT will now be able to use to offset future taxable income. Management estimates FAT's public float will increase to approximately 46% on a fully-diluted basis.
Terms. The 9,679,288 FAT shares held by FCCG will, in essence, be distributed to the current FCCG stockholders in proportion to their FCCG ownership. We would note that FAT CEO and President Andy Wiederhorn owns approximately 80% of FCCG. Current, non-FCCG, FAT common holders will receive $5.80 liquidation preference per common share in FAT's 8.25% Series B Preferred (FATBP) ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.