FAT Brands stock hits 52-week low at $3.58 amid market challenges

Published 30/01/2025, 15:36
FAT Brands stock hits 52-week low at $3.58 amid market challenges

In a turbulent market environment, FAT Brands Inc. has seen its stock price touch a 52-week low, dipping to $3.58. With a market capitalization of $102.4 million and a substantial debt burden of $1.54 billion, the company faces significant financial challenges, according to InvestingPro data. The parent company of popular restaurant chains has faced significant headwinds over the past year, reflected in a notable 1-year change with a decrease of 24.55%. Despite these challenges, the company has achieved impressive revenue growth of 42.38% over the last twelve months and maintains a substantial dividend yield of 17.87%. Investors are closely monitoring the company’s performance as it navigates through the challenges of a dynamic food industry landscape, with hopes for a strategic turnaround that could potentially rejuvenate its stock value in the coming months. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional ProTips available for subscribers.

In other recent news, Fat Brands Inc. declared a monthly cash dividend of $0.171875 per share for its Series B Cumulative Preferred Stock, reflecting the company’s commitment to delivering value to its preferred stockholders. Investors can anticipate the receipt of their dividends next month, as the company maintains its practice of monthly distributions. Fat Brands has reported a significant 31.1% increase in Q3 2024 revenue, largely due to the acquisition of Smokey Bones. However, the company also reported a net loss of $44.8 million and a decrease in adjusted EBITDA to $14.1 million from $21.9 million year-over-year. In terms of expansion, Fat Brands plans to open 40 new units in Q4 2024, with approximately 1,000 new units in the pipeline, potentially adding $50 million to $60 million in annual adjusted EBITDA. However, the company has faced challenges with Smokey Bones and Fazoli’s, both of which reported sales declines. To address this, Fat Brands plans to re-franchise Fazoli’s and convert 30 Smokey Bones locations to Twin Peaks. In corporate governance, Fat Brands recently amended its corporate charter and successfully held elections for its board of directors. These are some of the recent developments for Fat Brands Inc.

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