FAT Brands Inc. (NASDAQ:FAT), a Delaware-incorporated company specializing in retail eating places with a market capitalization of $93 million, disclosed tax information regarding its 2024 dividends and adjustments to its Warrant exercise prices in a recent SEC filing.
According to InvestingPro data, the company has shown strong momentum with a 21% gain over the past six months, despite operating with significant debt levels.
The data, based on the company's fiscal year ending December 29, 2024, indicates that all dividends paid on its Class A and Class B Common Stock were classified as a return of capital, amounting to $0.56 per share for each class.
The company also paid monthly dividends on its 8.25% Series B Cumulative Preferred Stock, totaling $2.062500 per share for the fiscal year. These dividends were similarly classified entirely as a return of capital. Notably, FAT Brands maintains a substantial 10.3% dividend yield, though InvestingPro analysis indicates the company is currently burning through cash rapidly with a concerning current ratio of 0.3.
Concurrent with these dividend payments, FAT Brands adjusted the exercise price of its Warrants to purchase Class A Common Stock. Originally set at $5.00 per share, the exercise price was reduced on a quarterly basis, ending the fiscal year at $2.2142 per share.
FAT Brands advises holders of its Common Stock, Preferred Stock, and Warrants to consult with tax advisors for a comprehensive understanding of the potential tax implications of these dividends and Warrant adjustments. The company's announcement is an administrative update and does not reflect any operational or financial performance changes.
Investors and stockholders are encouraged to review the complete details of the fiscal year's dividend distributions and the associated tax treatment as reported in the company's Form 8-K filed today. For a deeper understanding of FAT Brands' financial health and prospects, including 8 additional exclusive ProTips and comprehensive valuation analysis, investors can access the full research report on InvestingPro.
In other recent news, Fat Brands Inc. has reported significant developments. The company experienced a 31.1% increase in Q3 2024 revenue, largely attributed to the acquisition of Smokey Bones. However, the company reported a net loss of $44.8 million, and adjusted EBITDA decreased to $14.1 million from $21.9 million year-over-year.
Fat Brands also announced 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.
Despite these growth plans, Fat Brands encountered challenges with Smokey Bones and Fazoli's, both of which reported sales declines. To address this, the company plans to re-franchise Fazoli's and convert 30 Smokey Bones locations to Twin Peaks. It is also undergoing debt refinancing for Twin Peaks and Fazoli's with favorable rates compared to the market.
In terms of corporate governance, Fat Brands recently amended its corporate charter and held elections for its board of directors. The company also declared a monthly cash dividend for its Series B Cumulative Preferred Stock holders at a rate of $0.171875 per share. The company's commitment to delivering value to its investors is evident in these recent developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.