Wednesday, November 03, 2021
FAT Brands Inc. (FAT)
Acquiring Fazoli’s for $130 Million
FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, and acquires predominantly fast casual restaurant concepts. The company provides turkey burgers, chicken Sandwiches, chicken tenders, burgers, ribs, wrap sandwiches, and others. Its brand portfolio comprises Fatburger, Buffalo’s Cafe and Express, and Ponderosa and Bonanza. The company’s overall footprint covers nearly 32 countries. Fatburger generates maximum revenue for the company.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Adding to the Portfolio. FAT Brands has agreed to acquire Fazoli’s, an Italian QSR restaurant chain, for $130 million from Sentinel Capital Partners. The purchase will increase FAT Brands’ footprint to 2,300 franchised and corporate-owned locations, with systemwide sales of more than $2.1 billion. Fazoli’s is expected to add $14.5-$15.0 million of normalized EBITDA, including stores under development. FAT is financing the purchase through its securitization facility with the deal expected to close by mid-December.
Who Is Fazolis? Founded in 1988, Fazoli’s owns and operates nearly 220 restaurants in 28 states, with average revenue per location in the $1.5 million range. Fazoli’s is the largest premium QSR Italian chain in the U.S., serving premium Italian food, Submarinos sandwiches, salads, pizza, and desserts. The Company has a development pipeline of 100 units expected to open over the next several years …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
