FAT Brands Inc shares pop after reporting jump in fiscal 2Q same-stores sales
Shares of FAT Brands Inc (NASDAQ:FAT), which owns the Fatburger, Ponderosa Steakhouse and Buffalo’s World Famous Wings restaurants, have put on weight since the franchise operator reported positive same-store sales across all its dining outlets.
Investors have responded well to the news that Fatburger and Buffalo’s Express saw same-store sales growth – the change in year-over-year sales – of 9.5% on revenue of US$2mln in its fiscal second quarter, while same-store sales growth also inched up by 0.9% on revenue of US$1.4mln at the Ponderosa and Bonanza Steakhouses.
Buffalo’s Café, meanwhile, reported a pick-up in same-store sales of 10.2% on revenue of US$511,00.
Shares in FAT Brands have added nearly 6% to US$7.02 since reporting the results late Tuesday.
The fast-casual chain operator posted net income of US$373,000, or US$0.04 per share, on total revenue of US$3.9mln in its fiscal second quarter ended July 1. Revenue improved from US$3.6mln the fiscal first quarter, while net income dipped from US$509,000, or US$0.05 per share, in the year-ago period.
“Our flagship Fatburger brand continued to achieve particularly impressive results,” noted CEO Andy Wiederhorn. “Strong Fatburger results continue to be driven by momentum in delivery, as well as by increased traction of the plant-based Impossible Burger. We also saw positive trends in our casual dining brands, supported by the tests of a new media campaign, to-go packaging and third-party delivery.”
FAT wins financing to grow FATTER
The company announced the completion of US$8mln in Series A preferred stock financing, the proceeds of which are being used to acquire new restaurant brands, pay down debt and provide working capital.
FAT has also secured financing to close its US$12.5mln July acquisition of the Hurricane Grill & Wings restaurants, which sell jumbo fresh chicken wings.
After integrating Hurricane into its portfolio of restaurants, CEO Andy Wiederhorn says the company expects to see an annualized revenue run rate of US$19m to US$20mln and an annualized EBITDA run rate of US$10mln to US$11mln, starting in the fourth quarter of this year.
“The financing we secured provides dry powder for future … acquisitions; our pipeline of franchise brands is robust and we are actively working to complete additional transactions,” Wiederhorn said in a statement.
Last month, the company borrowed US$16mln as a term loan with FB Lending to fund its acquisition of Hurricane and repay borrowings of US$2mln.
FAT (Fresh. Authentic. Tasty.) Brands is a franchising company that currently operates more than 300 locations across six brands: Fatburger, Buffalo’s Café, Buffalo’s Express, Hurricane Grill & Wings as well as the Ponderosa and Bonanza Steakhouses.
Contact Ellen Kelleher at [email protected]
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/202585/fat-brands-inc-shares-pop-after-reporting-jump-in-fiscal-2q-same-stores-sales-202585.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).