In a recent transaction, Mark Elenowitz, a director at Fat Brands, Inc. (NASDAQ:FAT), purchased 6,200 shares of the company's Series B Cumulative Preferred Stock for a total value of $68,200. The purchase, which took place on August 26, 2024, was executed at a price of $11.00 per share.
This acquisition has increased Elenowitz's holding in the company to a total of 9,200 shares of the preferred stock. The transaction is part of the regular reporting of stock dealings by company insiders and executives, providing transparency to investors and the market.
Fat Brands, Inc., known for its involvement in the retail eating places sector, has been a point of interest for investors tracking insider activity. Such transactions often provide insights into the confidence levels that company insiders have in the business's prospects.
The purchase by Elenowitz is a direct ownership transaction, indicating his personal stake in the company's performance. Investors often monitor these buys as they may suggest that insiders believe in the company's future growth and profitability.
As the market processes this new information, it remains to be seen how this insider activity might influence investor sentiment towards Fat Brands. The company's shares are publicly traded on the NASDAQ, where they can be followed under the ticker symbol FAT.
In other recent news, FAT Brands Inc. has reported a significant rise in its second quarter earnings for 2024. The company experienced 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. Despite reporting a net loss of $39.4 million for the quarter, FAT Brands has announced plans to open 120 new units this year, primarily focusing on 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, marking a 9.3% increase from the previous year.
In other recent developments, FAT Brands declared a monthly cash dividend of $0.171875 per share for its Series B Cumulative Preferred Stock for August 2024. This action is in line with the company's established pattern of returning value to its shareholders through regular dividends. The company is also exploring acquisitions in categories such as salad, sandwich, and coffee brands. These recent developments reflect FAT Brands' confidence in its ongoing operations and future prospects.
InvestingPro Insights
Following the recent insider purchase at Fat Brands, Inc. (NASDAQ:FAT) by director Mark Elenowitz, investors may find additional context in the company's financial performance and market standing through real-time data from InvestingPro. The company operates with a significant debt burden, which is a critical factor to consider when assessing its financial health. Despite this, Fat Brands has managed to raise its dividend for three consecutive years, signaling a commitment to returning value to shareholders.
InvestingPro Data shows a market capitalization of $89.32 million, which provides a sense of the company's size in the retail eating places sector. A notable metric is the dividend yield, which stands at an impressive 10.67%, reflecting the significant dividend payouts to shareholders. This aligns with one of the InvestingPro Tips that highlights the company's substantial dividend contributions. Additionally, the revenue growth over the last twelve months, as of Q2 2024, is 36.36%, indicating a robust increase that could be a positive sign for potential investors looking at sales growth.
However, the company's P/E Ratio is negative at -0.65, and the adjusted P/E Ratio for the last twelve months as of Q2 2024 is also negative at -0.6, which suggests that the company has not been profitable over the period. This aligns with another InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Investors might weigh this against the company's sales growth and dividend yield to determine their investment strategy.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/FAT, which can provide deeper insights into Fat Brands' financials and market performance.
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