ICR Conference. On Monday afternoon, FAT Brands CEO Andrew Wiederhorn gave a presentation at the ICR conference. Today, FAT Brands consists of 17 different concepts, with over 2,300 locations across 40 countries with $2.2 billion of systemwide sales. FAT Brands has over 750 franchise partners including 300 multi-unit franchisees.Synergies. CEO Wiederhorn spent considerable time outlining the potential synergies available to FAT Brands, including $10 million from the GFG acquisition, which should be done by the end of 2022. In addition, there is the ability to wring up to another $15 million of EBITDA from the factory by increasing capacity utilization from 30% to 60%, and the potential of up to $30 million of savings from a higher rating and lowered interest rates on the outstanding debt.Organic Growth. With an 846 unit pipeline, there is tremendous organic growth opportunities. We expect the addition of 100-120 new units annually and if all 800 units eventually came on-line, this would add $50 million to EBITDA without any additional cost on FAT Brands' part. Organic growth, both the existing pipeline and additional cross selling opportunities across the franchisee base, is a major focus of management.Inorganic Growth. While FAT Brands continues to work a number of "tuck in" types of acquisitions, 2022 likely will be more about integrating the 2021 acquisitions. The Company will remain opportunistic and if the right acquisition comes along is willing to pounce. However, we get the sense management is comfortable with the 17 brands currently in-house and is laser focused on integrating these chains.Maintaining Outperform, $25 PT. We believe the recent acquisitions represent a new paradigm for FAT Brands and vaults the Company into the "big leagues," in our view. We are maintaining our Outperform rating and our 12-month price target of $25, which equates to 14.7 times normalized 2022 EBITDA, still a discount to its peer group. Read More >>