In a recent filing with the Securities and Exchange Commission, Fat Brands Inc. announced the scheduling of its 2024 Annual Meeting of Stockholders for December 24, 2024. The restaurant company, known for its retail eating places, has informed that the specific time and location details for the meeting will be included in its definitive proxy statement, which will be filed with the SEC.
The announcement also specifies the deadline for stockholders to submit proposals for consideration. Stockholders interested in having their proposals included in the proxy materials must send their written notices to the company's corporate office by November 27, 2024. These submissions must adhere to the rules and regulations set forth by the SEC under the Securities Exchange Act of 1934.
Additionally, the company's bylaws had set a period from August 16, 2024, to September 15, 2024, for stockholders to propose business or nominate director candidates for the upcoming Annual Meeting. However, no proposals or nominations were received during this timeframe.
Fat Brands, incorporated in Delaware with a fiscal year-end on December 26, is headquartered in Beverly Hills, California. The company's stock is traded on The Nasdaq Stock Market LLC under various symbols, including FAT for Class A Common Stock, FATBB for Class B Common Stock, FATBP for Series B Cumulative Preferred Stock, and FATBW for Warrants to purchase Class A Common Stock.
In other recent news, Fat Brands Inc. has reported significant developments. 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 on November 20, 2024.
In terms of earnings and revenue, Fat Brands reported a 31.1% increase in Q3 2024 revenue to $143.4 million, mainly attributed to the acquisition of Smokey Bones. However, the company experienced a net loss of $44.8 million and a decline in adjusted EBITDA to $14.1 million from $21.9 million year-over-year.
Furthermore, Fat Brands announced plans to open 40 new units in Q4 2024, with approximately 1,000 new units in the development pipeline, potentially adding $50 million to $60 million in annual adjusted EBITDA. Despite these growth plans, the company faced challenges with Smokey Bones and Fazoli's, both of which reported sales declines. To address this, Fat Brands has plans to re-franchise Fazoli's and convert 30 Smokey Bones locations to Twin Peaks. It is also undergoing debt refinancing for Twin Peaks and Fazoli's with favorable rates compared to the market.
InvestingPro Insights
As Fat Brands Inc. prepares for its 2024 Annual Meeting of Stockholders, investors may find additional context from recent financial data and expert insights. According to InvestingPro, Fat Brands has a market capitalization of $92.03 million, reflecting its current market valuation. The company's revenue for the last twelve months as of Q3 2024 stood at $606.01 million, with a notable revenue growth of 42.38% over the same period.
InvestingPro Tips highlight that Fat Brands "has raised its dividend for 3 consecutive years" and "pays a significant dividend to shareholders." This is evident in the current dividend yield of 10.44%, which may be of interest to income-focused investors attending the upcoming annual meeting. However, it's important to note that the company "operates with a significant debt burden" and is "quickly burning through cash," which could be topics of discussion at the stockholder meeting.
For a more comprehensive analysis, InvestingPro offers 11 additional tips on Fat Brands, providing deeper insights into the company's financial health and market position. These additional tips could be valuable for stockholders preparing for the annual meeting or considering proposal submissions.
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