Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Global franchising firm FAT Brands Inc’s (NASDAQ:FAT) share price has soared nearly 200% after adding a new restaurant to its menu in the shape of Johnny Rockets…
FAT Brands has agreed to acquire Johnny Rockets restaurant chain from an affiliate of private equity company Sun Capital Partners Inc for around $25 million.
The announcement saw FAT Brands share price catapult higher to $10.50 per share, up 197.45% at the time of writing. It is the first time its share price has been at this level since January 2018.
The deal will be funded through cash the company has available and proceeds generated through its securitisation facility with the purchase expected to be completed in September 2020.
“Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio. This acquisition is a transformative event for FAT Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights,” said Andy Wiederhorn, President and CEO of FAT Brands.
The acquisition means FAT will have more than 700 franchised and company-owned restaurants worldwide, with its annual system-wide sales exceeding $700 million…
The company reported its second-quarter results last week with sales numbers down, but FAT was upbeat on the situation saying that it had reached its strategic goals and has a robust development pipeline for the rest of the year.
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