Ongoing Organic Improvement. FAT Brands continues to see a rebounding organic environment. Not only are COVID restrictions loosening but people seem to be energized to eat out. In addition, more existing locations are coming back on-line, with the majority of the remaining temporarily closed locations in unique (i.e. cruise ships/theme parks) locations. Unit expansion continues, with recent announcements on deals in France, Brazil, Chile, Italy, Peru, and Spain.Strong M&A Pipeline. FAT Brands' M&A pipeline remains robust. We would anticipate at least one announcement in 1H21 and additional announcements during the second half of the year, with at least one Johnny Rockets sized acquisition. While adding another burger concept may be a stretch, the addition of a wing concept, sandwich, etc could be on the table in our view.Refinancing? We anticipate FAT Brands to refinance its existing whole business securitization in 1H21. Given the Company's experience with its existing whole business securitization to date, we believe the Company will receive a larger commitment as well as a lower interest cost. With the refinancing, FAT Brands will be well positioned to continue pursuing accretive acquisitions.Updated Projections. We tweaked our 2021 projections to account for the refranchising of the owned Johnny Rockets locations. We are maintaining our first quarter revenue projection of $6.75 million and net loss of $0.06 per share. For the full year we are now at revenue of $33.8 million and net income of $0.36 per share.Maintaining Outperform, Raising PT to $12. We are maintaining FAT Brands shares at Outperform but raising our 12-month price target to $12 from a previous $10. We believe the Johnny Rockets acquisition to be transformative, providing the Company with significant size in terms of number of locations and systemwide sales, enhanced geographic diversification, a broadened franchisee base, and multiple avenues for additional growth. And we see more M&A to come.Read More >>