FAT BRANDS RECRUITES SEVERAL EXPERIENCED EXECUTIVES, INCLUDING CFO, ANNOUNCES $500M SHELF REGISTRATION, INCLUDING IMMEDIATE UNDERWRITING OF $10M PREFERRED STOCK

There have been several recent significant announcements for FAT Brands, Inc. (FAT), a rapidly growing multi-brand restaurant franchisor that is within reach, in the next 12-24 months, of $1B in portfolio systemwide sales.

MANAGEMENT ADDITIONS:

From a financial and operational standpoint:

Ken Kuick, 52 years of age, previously CFO at Noodles & Company (NDLS), a publicly held company with 448 restaurants (372 company operated and 76 franchised) has been appointed CFO at FAT Brands, effective immediately. Kuick’s background, especially with the improved positioning of NDLS over the last several years, and their recent emphasis on digital ordering, qualifies him especially well for the position at FAT. Moreover, his decision, as well as that of Sussman and Rosen, described below, to join the rapidly growing FAT Brands, is a testimonial to their view of FAT’s future.

From a legal standpoint:

Allen Sussman, previously with Loeb & Loeb LLP in L.A., is newly appointed as General Counsel. At Loeb & Loeb he was a partner in the Capital Markets and Corporate Practice Groups, shepherding FAT through its IPO and acquisitions.

From an investment capital standpoint:

Rob Rosen has been added as EVP Capital Markets. Rosen has over 30 years of experience in structured finance, banking and lending, working with Fleet Bank, Kidder Peabody, The Bank of Tokyo and Black Diamond Capital Management

CAPITAL PLANS:

Separately, FAT Brands filed an S-1 shelf registration for a total of up to $500M of corporate securities, to be sold “from time to time”. The mix of offering is mostly to be defined, covering common stock, preferred stock, debt, warrants, subscription rights, and units.

Also filed is a registration for an underwritten offering of $10M worth of FAT’s Series B 8.25% cumulative preferred stock. There is currently $21M of this preferred (FATBP) outstanding.

The executive additions and financial announcements referenced above are obviously in support of the management’s announced intention of adding, within a matter of months, to their seven franchised restaurant brands.

Roger Lipton