In a recent transaction on August 15, Fog Cutter Holdings, LLC, a significant shareholder in Fat Brands, Inc. (NASDAQ:FAT), has increased its position in the company through the purchase of additional shares. The investment entity purchased 1,000 shares of Class B Common Stock at a price of $4.6705 per share, amounting to a total investment of $4,670.
This latest acquisition brings Fog Cutter Holdings’ total ownership in Fat Brands to 707,534 shares. The transaction reflects the investor’s continued confidence in the company, which operates in the retail eating places sector under the ticker symbol FAT.
Investors often monitor the buying and selling activities of major shareholders as these can be indicative of the company’s financial health and future prospects. The details of the transaction were disclosed in a regulatory filing with the Securities and Exchange Commission.
In other recent news, FAT Brands reported a significant increase in its total revenue for the second quarter of 2024, with a rise of 42.4% to $152 million. The company also saw system-wide sales go up by 7.3% to $614.7 million. Despite a net loss of $39.4 million for the quarter, FAT Brands plans to expand its operations, with a goal of opening 120 new units this year. The company is particularly optimistic about the polished casual segment, with ongoing conversions of Smokey Bones restaurants to Twin Peaks. FAT Brands is also considering potential acquisitions in various categories, including salad, sandwich, and coffee brands. Notably, the Georgia-based manufacturing facility contributed $3.8 million to adjusted EBITDA in Q2, a 9.3% increase from last year. These recent developments highlight the company’s strategic focus on growth and diversification.
InvestingPro Insights
Following the recent acquisition by Fog Cutter Holdings, it’s noteworthy to consider the financial health and future prospects of Fat Brands Inc. (NASDAQ:FAT) through some key metrics and insights from InvestingPro. With a market capitalization of $88.64 million, Fat Brands is a relatively small player in the market. The company has experienced a notable revenue growth of 36.36% over the last twelve months as of Q2 2024, indicating a strong increase in sales. Despite this growth, the company’s operating income margin remains negative at -2.89%, suggesting challenges in converting sales into operational profits.
Investors looking for income-generating investments may find Fat Brands’ significant dividend yield of 10.77% attractive. This aligns with one of the InvestingPro Tips, highlighting that the company has raised its dividend for three consecutive years. However, it’s important to balance this with the company’s financial stability, as another InvestingPro Tip points out that Fat Brands operates with a significant debt burden.
For those interested in the company’s stock performance, Fat Brands’ shares are currently trading at 55.06% of their 52-week high, with a price of $5.20 at the previous close. The stock has faced volatility, as evidenced by a 40.02% decline over the last six months. For more nuanced insights and additional InvestingPro Tips, which currently number 13 for Fat Brands, investors can visit https://www.investing.com/pro/FAT.
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