FAT Brands’ UPDATE: THE BOARD OF DIRECTORS IS RESTRUCTURED, AS UNIT DEVELOPMENT DEALS AND NEW PRODUCTS ARE ANNOUNCED
An 8K filing on April 3rd described a restructuring of the Board of Directors at FAT Brands. While not referenced in early March, when CEO, Andy Wiederhorn’s revised role (from CEO to strategic advisor) was announced, this move to help separate the company from ongoing legal issues seems logical. Below the listing of recent fundamental developments, we have provided a link to our description in early March of that development. We see no reason that the Board restructuring will affect the outlook for the business fundamentals.
Of the former directors, only Andy Wiederhorn and Lynne Collier remain. Five insiders (including Wiederhorn’s three sons, all with leadership positions at the Company) are joined by three independent directors; Mark Elenowitz, Kenneth Kepp, and Tyler Child. We have provided just below a link to the 8-K filing.
RECENT ANNOUNCEMENTS REGARDING BUSINESS FUNDAMENTALS
On April 5th: FAT Brands’ Elevation Burger chain unveiled fresh baked Chocolate Chip Cookies and Chocolate Chip Cookie Ice Cream Sandwiches. Complimenting Elevation Burger’s hand-spun shakes and ice cream, this new offering demonstrates the opportunity to more fully utilize the dough manufacturing facility that, already generating approximately $15M of annual EBITDA, is operating far below capacity. As the release points out: “Following this rollout, we will look into similar collaborations with the other burger brands in our portfolio”.
On March 23rd: FAT Brands’ Johnny Rockets change announced a new development deal for 20 franchised locations in Mexico over the next 10 years, on top of the 25 restaurants that debuted there in 1991.
On March 22nd: FAT Brands announced the official launch of their newly formed 501 © (3) charitable foundation. Seeded with a $250,000 donation from the Company, FAT is obviously reaching out to serve the employees and communities within their 17 brand portfolio of worldwide franchised restaurant brands.
On March 21st: FAT Brands’ Pretzelmaker brand opened its first drive-thru location, in Mason City, Iowa, with its Fresh Twist brand, which was launched in 2018 to fulfill breakfast and late-night options, especially aimed at small footprint locations
On March 16th: FAT Brands’ announced a 10-unit development deal for co-branded (35 year old) Great American Cookie and (40 year old) Marble Slab Creamery locations. They will be opened in Puerto Rico over the next five years, the first two by 2024.
On March 9th: A co-branded Fatburger/Buffalo’s Express location opened in Orland Park, Illinois by a franchised partnership including NBA athletes, Anthony Davis, Jr., Derrick Rose and Tim Hardaway, Jr. Joined by two successful African American female entrepreneurs, Toi Salter and Jackie Jackson, this partnership is anticipating further development in the area.
On March 6th: FAT Brands announced that founder, Andy Wiederhorn would step aside as CEO and transition to a strategic advisory role in May ’23. Our website described that development per the link below: