FAT Brands

FAT Brands Inc.
Company typePublic
Nasdaq: FAT
IndustryRestaurants
Founded2017; 7 years ago (2017)
Headquarters
Beverly Hills, California
,
United States
Key people
Ken Kuick (Co-CEO)
Rob Rosen (Co-CEO)
Thayer D. Wiederhorn (COO)
RevenueIncrease US$480.5 million (2023)[1]
Increase US$−22.3 million (2023)[2]
Increase US$−90.1 million (2023)[3]
Total assetsIncrease US$1.39 billion (2023)[4]
Total equityIncrease US$15.6 billion (2023)[5]
Number of employees
7,390 (December 2023)[6]
SubsidiariesFatburger
Marble Slab Creamery
Johnny Rockets
Hurricane Grill & Wings
Great American Cookies
Round Table Pizza
Ponderosa Steakhouse
Bonanza Steakhouse
Buffalo's Cafe
Fazoli's
Hot Dog on a Stick
Native Grill & Wings
Twin Peaks
Pretzelmaker
Yalla Mediterranean
Elevation Burger
Smokey Bones
Websitefatbrands.com

FAT Brands Inc. is an American multi-brand restaurant operator headquartered in Beverly Hills, California.

History

FAT Brands began as a holding company for Fatburger in 2017, gaining a chairman in Ed Rensi. On August 13, 2020, Johnny Rockets was acquired by FAT Brands for $25 million.[7]

In July 2021, FAT purchased Global Franchise Group,[8] now owning Round Table Pizza, Hot Dog on a Stick, Great American Cookies, Pretzelmaker and Marble Slab Creamery. On September 1, 2021, FAT Brands announced that it would acquire Twin Peaks, for $300 million.[9] The acquisition was completed on October 1.[10]

In May 2022, it was announced FAT Brands had acquired the franchised chain, Nestlé Toll House Café for an undisclosed sum, and plans to convert all 86 locations to Great American Cookies locations.[11]

In September, 2023 FAT purchased Smokey Bones from Sun Capital Partners for $30 million.[12]

In 2024, Andrew Wiederhorn, ex-CEO, current controlling shareholder, and Chairman of the Board of FAT Brands, was indicted on federal criminal charges, accused of taking $47 million in shareholder loans for his personal benefit which were then never paid back, also concealing millions of dollars in reportable compensation and taxable income from the Internal Revenue Service. Former CFO Rebecca D. Hershinger was also accused of assisting Wiederhorn in the scheme.[13] The Board of Directors was never informed about the "loans",[14] Fat Brands never disclosed them as related party transactions to investors, and they were written off after the company merged with its largest shareholder, Fog Cutter Capital Group (also majority-owned by Wiederhorn), in 2020.[15] The U.S. Securities and Exchange Commission and the U.S. Attorneys Office for California had previously opened investigations into the company and Wiederhorn in 2021,[16] and Wiederhorn had resigned as CEO in 2023 as a result of the investigation, later restructuring the Board of Directors with members under his control.[13]

Brands

As of May 2022, FAT Brands own the following chains:

References

  1. ^ "Fat Brands Inc. 2023 SEC Form 10-K" (PDF).
  2. ^ "Fat Brands Inc. 2023 SEC Form 10-K" (PDF).
  3. ^ "Fat Brands Inc. 2023 SEC Form 10-K" (PDF).
  4. ^ "Fat Brands Inc. 2023 SEC Form 10-K" (PDF).
  5. ^ "Fat Brands Inc. 2023 SEC Form 10-K" (PDF).
  6. ^ "Fat Brands Inc. 2023 SEC Form 10-K" (PDF).
  7. ^ "Burger merger: Fatburger owner is buying Johnny Rockets for $25 million". CNN. August 13, 2020. Retrieved August 13, 2020.
  8. ^ "FAT Brands Completes Acquisition of Global Franchise Group".
  9. ^ "FAT Brands Inc. Agrees to Acquire Twin Peaks Restaurant Chain for $300 Million". GlobeNewswire News Room (Press release). 1 September 2021. Retrieved 5 September 2021.
  10. ^ "FAT Brands Inc. Completes $300 Million Acquisition of Twin Peaks Restaurant Chain". GlobeNewswire News Room. 1 October 2021. Retrieved 3 October 2021.
  11. ^ "FAT Brands to acquire franchised chain Nestlé Toll House Café by Chip". Verdict Food Service. 2022-05-26. Retrieved 2022-05-26.
  12. ^ "FAT Brands Announces Acquisition of Smokey Bones Barbecue Chain".
  13. ^ a b Mejia, Brittny; Hamilton, Matt (2024-05-10). "Ex-Fatburger boss used company funds for Rolls-Royce and other luxuries in $47-million scheme, indictment says". Los Angeles Times. Retrieved 2024-05-29.
  14. ^ "Prosecutors say former head of Fatburger, Round Table Pizza concealed $47 million of income in tax evasion scheme". KTLA. 2024-05-10. Retrieved 2024-05-29.
  15. ^ Lucas, Amelia (2024-05-10). "Fat Brands stock craters after company, chair Andy Wiederhorn charged in $47 million 'sham' loan scheme". CNBC. Retrieved 2024-05-29.
  16. ^ Michaels, Laura (2023-03-07). "FAT Brands CEO Andy Wiederhorn Steps Down Amid Government Investigation". Franchise Times. Retrieved 2024-05-29.
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