FAT Brands to Buy Johnny Rockets
Fat Brands, the owner of Fatburger, has achieved a offer to invest in Johnny Rockets for about $25 million from its personal fairness firm owner Sunlight Money Partners.
“This acquisition is a transformative event for Fat Brands in conditions of scale and brand name recognition,” Fat Brands chief government officer Andy Wiederhorn claimed in a statement. “We see a lot of synergy with Johnny Rockets and our present-day restaurant principles and we are keen to acquire the brand name to new heights.”
Fat Brands is funding the offer with income on hand and proceeds from its securitization facility. When the offer closes, it will have additional than seven-hundred dining places throughout the world with annual system-wide revenue exceeding $seven-hundred million.
The announcement of the offer will come as lots of quick-food stuff dining places have observed a sharp maximize in demand amid COVID-19 lockdown orders.
Fat Brands documented a loss of $4.25 million or 36 cents for each share for the next quarter, down from a loss of $508,000 a yr ago. The company claimed its earnings fell to $3.one million for the next quarter, down from $5.nine million a yr ago, indicating the decrease, “overwhelmingly reflects a decrease in royalty earnings relevant to the affect of COVID-19.”
Fat Brands acquired the quick-relaxed franchise Elevation Burger final June for $ten million.
“Similar to Fatburger, Johnny Rockets obtained its get started in Los Angeles, and we couldn’t be additional happy to include yet another true staple in our residence city to our portfolio,” Wiederhorn claimed.
Wiederhorn claimed Fat Brands strategies to include plant-based mostly objects and vegan milkshakes to modernize Johnny Rockets’ menu.
Fat Brands shares jumped 236% in premarket investing Thursday. They have been up additional than a hundred and fifteen% at midday.
The offer is expected to close in September.
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