FAT Brands stock hits 52-week low at $7.55 amid market challenges

FAT Brands Inc. (FATBP) stock has tumbled to a 52-week low, reaching a price level of $7.55 USD, reflecting a significant downturn in the company’s market valuation. According to InvestingPro data, the company maintains a substantial 26.51% dividend yield, though it operates under a concerning debt burden with a debt-to-capital ratio of 0.95. This latest price point underscores a challenging period for the parent company of popular restaurant chains, as it grapples with a stark 1-year change, showing a decline of -49.3%. Despite revenue growth of 23.35% in the last twelve months, InvestingPro analysis indicates a weak overall financial health score of 1.73, suggesting significant operational challenges. Investors are closely monitoring the stock’s performance, considering the broader implications of consumer spending habits and operational headwinds that may have contributed to the stock’s downward trajectory over the past year. InvestingPro subscribers have access to 10 additional key insights about FATBP’s financial position.

In other recent news, Twin Hospitality Group Inc. has announced its upcoming spin-off from FAT Brands Inc. This strategic separation will result in Twin Hospitality Group becoming an independent entity. The U.S. Securities and Exchange Commission has approved the registration statement related to this spin-off, which includes detailed information about the business and management post-separation. The spin-off is scheduled for January 29, 2025, with FAT Brands’ shareholders set to receive shares in Twin Hospitality Group. Specifically, shareholders of FAT Brands’ Class A and Class B common stock as of January 27, 2025, will receive 0.1520207 shares of Twin Hospitality Group’s Class A Common Stock for each share they own. "When-issued" trading of Twin Hospitality Group’s Class A Common Stock is expected to begin one day before the distribution, with regular trading anticipated to start on January 30, 2025, on the Nasdaq Global Market. Investors are advised to review the "Risk Factors" section in the information statement for a comprehensive understanding of potential risks associated with the spin-off.

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