FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT
Brands” or the “Company”) announced today that it has agreed to
acquire Native Grill & Wings, an Arizona-based restaurant chain
known for its cult-like following and 20 wing flavors that guests
can order by the individual wing, for $20 million from Wingtime,
LLC, a subsidiary of Cybeck Capital Partners, LLC. Marking FAT
Brands’ third chicken wing concept, the acquisition of Native Grill
& Wings will be funded with cash from the issuance of new notes
from the Company’s securitization facilities and is expected to
close in mid-December 2021.
With the acquisition of Native Grill &
Wings, FAT Brands will have more than 2,300 franchised and
corporate-owned stores around the world with a combined annual
system-wide sales of approximately $2.3 billion. The addition of
the chicken wing concept, including the new stores due to open and
under development, is expected to increase the Company’s post-COVID
normalized EBITDA by approximately $3 million in 2022. The Native
Grill & Wings transaction follows FAT Brands’ planned
acquisition of Fazoli’s announced in early November, and marks the
Company’s fourth acquisition in 2021, including Global Franchise
Group in July and Twin Peaks in October.
“With the chicken wing sector growing in
popularity throughout the pandemic, we knew that we wanted to
continue developing our portfolio further into this category by
bringing in a brand that would complement our existing wing
concepts,” said FAT Brands CEO Andy Wiederhorn.
“Native Grill & Wings has been on our radar for some time given
its ability to remain nimble and deliver strong system-wide sales
growth over the past year. We’re pleased to build off the success
established by Dan Chaon, Native brand CEO, and Cybeck Capital
Partners, LLC, and we look forward to expanding Native Grill &
Wings’ presence into new markets.”
“The Native Grill & Wings system is poised
for a breakout to the next level, and FAT Brands has the resources
and experience that can take it there. We are pleased to pass the
baton to FAT Brands for the benefit of the system,” said Joe
O’Hara, Managing Partner of Cybeck Capital Partners, LLC. Native
Grill & Wings CEO Dan Chaon commented, “I’ve known the FAT
Brands team for quite a while. The franchising experience and
operational synergies that they bring to the table can maximize the
potential of the Native Grill & Wings brand and our
franchisees.”
For FAT Brands Foley & Lardner LLP acted as
legal counsel. For Wing Time, LLC Taft Stettinius & Hollister
LLP acted as legal counsel.
###
About FAT (Fresh. Authentic. Tasty.)
Brands
FAT Brands (NASDAQ: FAT) is a leading global
franchising company that strategically acquires, markets and
develops fast casual, casual and polished casual dining restaurant
concepts around the world. The Company currently owns 15 restaurant
brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny
Rockets, Twin Peaks, Great American Cookies, Hot Dog on a Stick,
Buffalo’s Cafe & Express, Hurricane Grill & Wings,
Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa
and Bonanza Steakhouses, and franchises over 2,100 units worldwide.
For more information on FAT Brands, please
visit www.fatbrands.com.
About Native Grill & Wings
Based in Chandler, Arizona, Native Grill &
Wings is a family-friendly, polished sports grill with 23
franchised locations throughout Arizona, Illinois, and Texas.
Native, as the brand’s legion of fans call it, serves over 20
award-winning wing flavors that guests can order by the individual
wing, as well as an extensive menu of pizza, burgers, sandwiches,
salads and more. For more information, visit
http://nativegrillandwings.com/.
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including statements relating to the ability of
the Company to complete the acquisition of Fazoli’s and Native
Grill & Wings and open new stores under development, the future
financial performance and growth of the Company following the
acquisition of Fazoli’s and Native Grill & Wings, including
expectations of the Company’s EBITDA, unit volumes and system-wide
sales following the acquisition, and the Company’s ability to
conduct future accretive and successful acquisitions.
Forward-looking statements reflect the Company’s expectations
concerning the future and are subject to significant business,
economic and competitive risks, uncertainties and contingencies
including, but not limited to, the Company’s ability to
successfully integrate and exploit the synergies of the acquisition
of Fazoli’s and Native Grill & Wings, the Company’s ability to
grow and expand revenues and earnings following the acquisition,
and uncertainties surrounding the severity, duration and effects of
the COVID-19 pandemic. These risks, uncertainties and contingencies
are difficult to predict and beyond our control, and could cause
our actual results to differ materially from those expressed or
implied in such forward-looking statements. We refer you to the
documents we file from time to time with the Securities and
Exchange Commission, such as our reports on Form 10-K, Form 10-Q
and Form 8-K, for a discussion of these and other risks and
uncertainties that could cause our actual results to differ
materially from our current expectations and from the
forward-looking statements contained in this press release. We
undertake no obligation to update any forward-looking statement to
reflect events or circumstances occurring after the date of this
press release.
About Non-GAAP Projected Financial Measures
This press release includes projections of
future EBITDA, a financial measure that is not prepared in
accordance with U.S. generally accepted accounting principles
(“GAAP”). EBITDA is defined as net income (loss), before interest
expense, income tax expense (benefit), depreciation and
amortization expense. EBITDA is not a measurement of the Company’s
financial performance under GAAP, and should not be considered in
isolation or as an alternative to net income (loss) as a measure of
financial performance, cash flows from operating activities as a
measure of liquidity, or any other performance measure derived in
accordance with GAAP. The Company believes that EBITDA is an
important supplemental measure of its operating performance because
it eliminates the impact of expenses that do not relate to business
performance. The Company also believes that this non-GAAP measure
is useful to investors because it and similar measures are
frequently used by securities analysts, investors and other
interested parties to evaluate companies in our industry and
provide additional information regarding growth rates on a more
comparable basis than would be provided without such
adjustments.
The Company prepared the information included in
this press release based upon available information and assumptions
and estimates that it believes are reasonable. The Company cannot
assure you that its estimates and assumptions will prove to be
accurate. Additionally, to the extent that forward-looking non-GAAP
financial measures are provided, they are presented on a non-GAAP
basis without reconciliations of such forward-looking non-GAAP
financial measures due to the inherent difficulty in forecasting
and quantifying certain amounts that are necessary for such
reconciliation.
MEDIA
CONTACT: Emily
Johnston, JConnellyejohnston@jconnelly.com 973-647-4177
INVESTOR RELATIONS:Lynne
Collier, ICRIR-FATBrands@icrinc.com646-430-2216
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