Stock market today: S&P 500 hits fresh record close on stronger economic growth
In a challenging market environment, FAT Brands Inc. has seen its stock price touch a 52-week low, dipping to $2.42. The parent company of popular restaurant chains has faced significant headwinds over the past year, with a 29.66% decline. Despite these challenges, the company has maintained strong revenue growth of 23.35% in the last twelve months, though InvestingPro analysis indicates the company operates with a significant debt burden and is quickly burning through cash. Investors have been cautious as the company navigates through a period marked by economic uncertainty and shifting consumer habits, which have impacted the broader restaurant industry. The current price level represents a critical juncture for FAT Brands as it strives to adapt and strengthen its market position amidst these testing conditions. With a notable dividend yield of 20.59% and an overall financial health score rated as WEAK by InvestingPro, investors seeking deeper insights can access comprehensive analysis and 8 additional ProTips through the platform’s detailed research reports.
In other recent news, FAT Brands Inc. announced that its fourth-quarter financial results did not meet expectations, with adjusted EBITDA reported at $14.4 million, falling short of Loop Capital’s estimate of $16.2 million. The company’s consolidated revenues for the quarter were $145.3 million, an 8.4% year-over-year decline, missing the analysts’ forecast of $169.9 million. In response, Loop Capital revised FAT Brands’ stock price target down to $12, while maintaining a Buy rating on the stock. Additionally, FAT Brands declared a monthly cash dividend of $0.171875 per share for its Series B Cumulative Preferred Stock, set to be distributed on April 21, 2025. The company also announced a significant expansion in France, planning to open 30 new Fatburger locations by 2028 through a partnership with Big M CIE. Furthermore, FAT Brands extended its securitization facility related to its Fazoli’s and Native Grill & Wings brands to 2025, providing additional financial flexibility. Lastly, the company adjusted stock option exercise prices following a distribution of shares from its Twin Peaks and Smokey Bones brands to common stockholders, reflecting its commitment to equitable treatment of option holders.
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