Fat Brands Inc., a company known for its portfolio of restaurant brands, has announced a monthly cash dividend for its Series B Cumulative Preferred Stock. The Board of Directors declared the dividend effective Monday, August 20, 2024.
The declared dividend is $0.171875 per share for the calendar month ending August 31, 2024. Shareholders of record as of the close of business on September 10, 2024, will be eligible for the dividend payment, which is scheduled for September 20, 2024.
This announcement follows the company's established pattern of returning value to its shareholders through regular dividends. Fat Brands has been consistent in paying out dividends, which is often seen as a sign of a company's financial health and stability.
Investors and market watchers often view such declarations as a positive indicator of a company's commitment to shareholder returns. The dividend payout is also a reflection of the company's confidence in its ongoing operations and future prospects.
The information for this dividend declaration is based on a press release statement filed with the Securities and Exchange Commission. Fat Brands is listed on The Nasdaq Stock Market under various symbols, including FAT for its Class A Common Stock, FATBB for its Class B Common Stock, FATBP for its Series B Cumulative Preferred Stock, and FATBW for warrants to purchase Class A Common Stock.
The company, incorporated in Delaware and headquartered in Beverly Hills, California, operates in the retail eating places sector under the standard industrial classification code 5812. It is recognized for its involvement in trade and services, with a fiscal year end on December 26.
Fat Brands' continued practice of issuing dividends may be of interest to investors looking for regular income streams from their equity investments. The announcement is strictly a factual report of the company's dividend declaration and does not constitute investment advice or an endorsement of the company's financial strategy.
In other recent news, FAT Brands Inc. has reported a strong performance in its second quarter of 2024 earnings call. The company saw a substantial increase in total revenue by 42.4% to $152 million and a rise in system-wide sales by 7.3% to $614.7 million compared to the same period last year.
In recent developments, FAT Brands is planning to expand its operations by opening 120 new units this year, primarily focusing on the polished casual segment. Despite reporting a net loss of $39.4 million for the quarter, the company is optimistic about the future, particularly in the polished casual segment, with conversions of Smokey Bones restaurants to Twin Peaks underway.
The Georgia-based manufacturing facility contributed $3.8 million to adjusted EBITDA in Q2, a 9.3% increase from last year. The company is also considering acquisitions in categories such as salad, sandwich, and coffee brands. While the company experienced a net loss this quarter, it is positioning itself for future growth with a strong leadership team and brand management platform.
InvestingPro Insights
Fat Brands Inc. has demonstrated a commitment to rewarding its shareholders with dividends, as evidenced by the recent announcement of its monthly cash dividend for its Series B Cumulative Preferred Stock.
For investors looking at the broader financial picture, InvestingPro provides key metrics that offer a snapshot of the company's performance. As of the last twelve months leading up to Q2 2024, Fat Brands has experienced robust revenue growth of 36.36%, underscoring the company's expanding operations.
An InvestingPro Tip highlights that Fat Brands has raised its dividend for three consecutive years, reinforcing the company's dedication to consistent shareholder returns. However, it is crucial for investors to be aware of the significant debt burden that the company operates with, which is an essential consideration for assessing the sustainability of future dividends.
InvestingPro Data also shows a substantial dividend yield of 10.57% as of the latest data, which might attract income-focused investors. Nevertheless, the company's stock price has seen considerable volatility, with a six-month price total return of -32.76%, indicating a period of recent underperformance relative to market expectations.
For those interested in a deeper analysis, InvestingPro offers additional tips on Fat Brands, which can be found at https://www.investing.com/pro/FAT. These tips provide valuable insights for investors considering this stock for their portfolios.
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