BEVERLY HILLS, CA—Fat Brands Inc., a company known for its retail eating places and currently valued at $96 million in market capitalization, announced today a monthly cash dividend for its Series B Cumulative Preferred Stock. According to InvestingPro data, the company maintains a significant 10.2% dividend yield while managing a substantial debt burden. The Board of Directors declared the dividend effective today, with a payout of $0.171875 per share for the calendar month ending January 31, 2025.
This dividend will be distributed on February 20, 2025, to all shareholders of record by the close of business on February 10, 2025. The declared dividend reflects the company's commitment to delivering value to its preferred stockholders, who have invested in the 8.25% Series B Cumulative Preferred Stock. Despite challenging market conditions, Fat Brands has demonstrated strong revenue growth of 42.38% over the last twelve months. For deeper insights into Fat Brands' financial health and growth prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports.
Fat Brands, headquartered in Beverly Hills, California, operates under the jurisdiction of Delaware, with its common and preferred stock traded on The Nasdaq Stock Market under the symbols (NASDAQ:FAT), (NASDAQ:FATBB), (NASDAQ:FATBP), and NASDAQ:FATBW. The company's stock currently trades at $5.59, with InvestingPro analysis suggesting the stock is currently trading above its Fair Value, with a concerning current ratio of 0.3 indicating potential liquidity challenges.
The announcement of this dividend payment is in line with the company's established practice of rewarding its stockholders and is documented in the latest filing with the Securities and Exchange Commission (SEC). The filing, made public on January 21, 2025, provides shareholders and potential investors with the latest financial actions taken by the company's Board of Directors.
This financial event is part of the routine disclosures that Fat Brands Inc. makes to keep the market informed of its financial decisions and strategies. The information is based on a press release statement from the company, ensuring transparency and regular communication with its investor base.
Investors in Fat Brands Inc.'s preferred stock can anticipate the receipt of their dividends next month, as the company continues its practice of monthly distributions. The exact amount, timing, and eligibility details are now officially recorded, providing clear and actionable information for the relevant stakeholders.
In other recent news, FAT Brands Inc. has announced several key financial and operational developments. The company reported a 31.1% increase in Q3 2024 revenue, largely due to the acquisition of Smokey Bones. However, FAT Brands also reported a net loss of $44.8 million and a decrease in adjusted EBITDA to $14.1 million from $21.9 million year-over-year.
In terms of dividends, FAT Brands disclosed tax information regarding its 2024 dividends and adjustments to its Warrant exercise prices in a recent SEC filing. The company paid dividends on its Class A and Class B Common Stock, as well as its 8.25% Series B Cumulative Preferred Stock. Additionally, FAT Brands adjusted the exercise price of its Warrants to purchase Class A Common Stock from $5.00 per share to $2.2142 per share.
Regarding its expansion plans, FAT Brands intends to open 40 new units in Q4 2024, with approximately 1,000 new units in the pipeline, potentially adding $50 million to $60 million in annual adjusted EBITDA. However, the company has faced challenges with Smokey Bones and Fazoli's, both of which reported sales declines. To address this, FAT Brands plans to re-franchise Fazoli's and convert 30 Smokey Bones locations to Twin Peaks.
In corporate governance, FAT Brands recently amended its corporate charter and successfully held elections for its board of directors. The company also declared a monthly cash dividend for its Series B Cumulative Preferred Stock holders at a rate of $0.171875 per share. These are some of the recent developments for FAT Brands Inc.
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