FATBB - FAT Brands: Liquidity Dips And Debt Ramps Up As Twin Peaks IPO Looms
2024-04-07 10:06:22 ET
Summary
- FAT Brands is a loss-making micro-cap company with a significant dividend yield, rising debt, and consecutive quarters of cash burn.
- The company generated strong revenue growth in the fourth quarter of 2023 but still faces a significant long-term debt burden.
- FAT plans to offload its Twin Peaks brand through an IPO in the second half of 2024, which could alleviate some of its debt but may not have a significant impact on its overall financial profile.
FAT Brands ( FAT ) has always offered a unique investing paradigm. It's a loss-making $126 million market micro-cap company offering a significant dividend yield against a rising specter of debt and a liquidity position beset by consecutive quarters of cash burn and a rising debt burden. FAT last declared a quarterly cash dividend of $0.14 per share , left unchanged sequentially and $0.56 per share annualized for a 7.47% dividend yield. FAT owns 18 fast casual and casual dining restaurant brands including Twin Peaks, Smokey Bones, Fatburger, and Johnny Rockets. The company is in intense growth mode with its opening of 125 new stores in 2023 set to be followed by an additional 150 units in 2024 against a development pipeline of 1,200 units....
FAT Brands: Liquidity Dips And Debt Ramps Up As Twin Peaks IPO Looms