- FAT Brands is a franchisor set up for explosive growth once COVID is over.
- Their purchase of Johnny Rockets should be transformative, increasing EBITDA by over 50%.
- Their merger with their Fog Cutter parent significantly improves management alignment and the firm's access to capital.
- Their re-securitization of debt saves 280 basis points worth of interest expense, while also providing $55 million in additional capital for growth.
- The common will be attractive for some, but we still like the 9.6% yielding preferred better.
For further details see:
I'm Getting FAT!