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LOS ANGELES - FAT Brands Inc. (market cap: $48.37M), the parent company of the iconic burger chain Fatburger, has announced a significant expansion in France through a partnership with Big M CIE. The collaboration aims to open 30 new Fatburger units across the country within the next three years, with the first five slated for 2026. According to InvestingPro data, the company has shown strong revenue growth of 23.35% over the last twelve months, despite facing operational challenges.
Since its first French location opened in Sarcelles nearly three years ago, Fatburger has been seeking strategic opportunities to grow its presence in the country. "We have been looking for the right strategic opportunities to continue our expansion in France," said Taylor Wiederhorn, Chief Development Officer of FAT Brands. The partnership with Mehdi Bella’s team, which has extensive experience in the French restaurant industry, is expected to facilitate a rapid scale-up of Fatburger locations. InvestingPro analysis reveals the company operates with a significant debt burden of $1.57B, making strategic partnerships crucial for expansion.
Known for its made-to-order, grilled burgers, Fatburger’s menu also features a variety of fries, including Fat and Skinny Fries, sweet potato fries, and hand-scooped milkshakes. The chain, which has been serving its unique style of burgers for 70 years, allows customers to customize their burgers with a wide range of toppings, from bacon and eggs to chili and onion rings.
FAT Brands is a leading global franchising company that owns 18 restaurant brands and operates over 2,300 units worldwide. The company’s portfolio includes a diverse array of dining concepts, from fast casual to polished casual eateries.
This expansion announcement is based on a press release statement and contains forward-looking statements regarding new store openings and performance. These projections are subject to business, economic, and competitive uncertainties, and actual results may differ materially from those anticipated.
In other recent news, Fat Brands Inc. reported an 8.4% decline in revenue for the fourth quarter of 2024, totaling $145.3 million, with a net loss of $67.4 million. The company also announced a monthly cash dividend for its Series B Cumulative Preferred Stock at $0.171875 per share, to be distributed in April 2025. Fat Brands has adjusted the exercise prices of stock options for its directors and executive officers following the spinoff of its Twin Peaks and Smokey Bones brands. Loop Capital revised its price target for Fat Brands stock to $12 from $15, maintaining a Buy rating despite the company’s financial challenges. Additionally, Fat Brands has extended its securitization facility related to Fazoli’s and Native Grill & Wings to 2025, allowing more flexibility in managing its financial commitments. The company plans to open over 100 new locations in 2025, indicating a focus on expansion despite recent setbacks. These developments reflect Fat Brands’ ongoing strategic efforts to manage its capital structure and support growth.
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