FAT Brands Announces Planned Acquisition of Johnny Rockets
With the acquisition of Johnny Rockets, FAT Brands will have more than 700 franchised and company owned restaurants around the globe with annual system-wide sales exceeding $700 million.
Johnny Rockets currently has over 325 locations across the U.S. and internationally, including 9 company owned locations.
Last week, Fat Brands reported second quarter revenue of $3.1 million, down from $5.9 million a year ago. The company said the decrease "overwhelmingly reflects a decline in royalty revenue related to the impact of COVID-19."
The company reported a loss of $4.25 million or 36 cents per share, compared with a net loss of $508,000 or 4 cents per share a year ago.
What's Next: Fat Brands expects the transaction to close in September. Following the closing of the deal, Fat Brands will boast more than 700 franchised and company-owned restaurants worldwide with total annual system-wide sales of more than $700 million.
The restaurant operator is fresh off a $40 million financing round in March and it will be looking for further acquisition opportunities, Wiederhorn told WSJ. By acquiring more small chains, the company can gain better scale and realize better prices for advertising and supplies.
"There is an opportunity now to take casual dining chains and get a consolidation of similar concepts," he said.
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With the acquisition of Johnny Rockets, FAT Brands will have more than 700 franchised and company owned restaurants around the globe with annual system-wide sales exceeding $700 million.
Johnny Rockets currently has over 325 locations across the U.S. and internationally, including 9 company owned locations.
Last week, Fat Brands reported second quarter revenue of $3.1 million, down from $5.9 million a year ago. The company said the decrease "overwhelmingly reflects a decline in royalty revenue related to the impact of COVID-19."
The company reported a loss of $4.25 million or 36 cents per share, compared with a net loss of $508,000 or 4 cents per share a year ago.
What's Next: Fat Brands expects the transaction to close in September. Following the closing of the deal, Fat Brands will boast more than 700 franchised and company-owned restaurants worldwide with total annual system-wide sales of more than $700 million.
The restaurant operator is fresh off a $40 million financing round in March and it will be looking for further acquisition opportunities, Wiederhorn told WSJ. By acquiring more small chains, the company can gain better scale and realize better prices for advertising and supplies.
"There is an opportunity now to take casual dining chains and get a consolidation of similar concepts," he said.
finance.yahoo.c...-104500735.html?guce_refer...
finance.yahoo.c...-154246235.html?guce_refer...