In a recent transaction, Fog Cutter Holdings, LLC, a ten percent owner in Fat Brands, Inc. (NASDAQ:FAT), has increased its holdings in the company. On September 11, 2024, Fog Cutter Holdings purchased 1,000 shares of Series B Cumulative Preferred Stock at a price of $9.53 per share, amounting to a total investment of $9,530.
This acquisition brings Fog Cutter Holdings' total ownership of this type of non-derivative security to 4,000 shares. The transaction was made public through a Form 4 filing with the Securities and Exchange Commission (SEC), which was signed by Allen Sussman, Attorney-in-Fact, on September 12, 2024.
Fat Brands is known for its position in the retail eating places sector, operating a variety of restaurant brands. The purchase price of $9.53 per share reflects the value that Fog Cutter Holdings sees in the preferred stock of the company.
Investors often monitor the buying and selling activities of major shareholders as it can provide insights into how insiders view the stock's value. Transactions like these are regularly reported to the SEC and are publicly accessible for investors who keep a close watch on market movements.
In other recent news, Fat Brands Inc. has reported significant growth in its second quarter of 2024 earnings, with total revenue increasing by 42.4% to $152 million and system-wide sales up by 7.3% to $614.7 million. Despite a net loss of $39.4 million for the quarter, the company has announced plans to expand its operations by opening 120 new units this year, primarily focusing on the polished casual segment. The Georgia-based manufacturing facility contributed $3.8 million to adjusted EBITDA in Q2, a 9.3% increase from last year. In addition, Fat Brands has declared a monthly cash dividend for its Series B Cumulative Preferred Stock of $0.171875 per share for August 2024. These are some of the recent developments with Fat Brands, which continues to demonstrate its commitment to shareholder returns and future growth.
InvestingPro Insights
The recent acquisition by Fog Cutter Holdings, LLC in Fat Brands, Inc. (NASDAQ:FAT) underscores the confidence insiders have in the company's potential. This is further reflected in the company's notable revenue growth. According to InvestingPro data, Fat Brands has experienced a substantial 36.36% increase in revenue over the last twelve months as of Q2 2024, with even more impressive quarterly revenue growth reaching 42.41%.
Despite this growth, it's important for investors to be aware of some of the challenges Fat Brands faces. An InvestingPro Tip highlights that the company operates with a significant debt burden, which is a critical factor to consider when assessing the company's financial health. Additionally, Fat Brands' stock price movements have been quite volatile, as indicated by a 33.69% drop in the six-month price total return, which could signal caution for short-term investors.
Moreover, Fat Brands has been rewarding its shareholders with a significant dividend, boasting a dividend yield of 11.59% as of the latest data. This could be attractive to income-seeking investors, especially considering the company has raised its dividend for 3 consecutive years, as per another InvestingPro Tip.
For investors seeking a deeper analysis, there are over 10 additional InvestingPro Tips available, providing a comprehensive outlook on Fat Brands' financials and market performance. These insights can be found at the dedicated InvestingPro page for Fat Brands: https://www.investing.com/pro/FAT.
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