LOS ANGELES - FAT Brands Inc. (NASDAQ: FAT), the parent company of several restaurant brands, including Round Table Pizza and Fatburger, announced today its Board of Directors has approved a fiscal 2024 second quarter cash dividend of $0.14 per share. The dividend applies to both Class A and Class B common stock and will be payable on May 31, 2024, to stockholders on record as of May 15, 2024.
The company, which franchises and owns over 2,300 units across 18 restaurant brands globally, stated that the future issuance and amount of dividends are at the discretion of the Board of Directors. Factors such as operational results, financial health, capital requirements, and other considerations will influence the decision and size of future dividends.
This announcement represents a continuation of FAT Brands' practice to return value to its shareholders but also comes with a cautionary note. The company highlighted that there is no guarantee of subsequent dividends in the future.
FAT Brands Inc. is known for its strategic acquisition and development of various dining establishments, ranging from quick service to casual dining. Its portfolio includes names like Marble Slab Creamery, Johnny Rockets, and Twin Peaks, among others.
The information in this article is based on a press release statement.
InvestingPro Insights
FAT Brands Inc. (NASDAQ: FAT), which just announced its latest dividend, is navigating a complex financial landscape. According to real-time data from InvestingPro, the company has a market capitalization of $122.32 million, reflecting its standing in the market relative to its peers. While the company has been consistent in raising its dividend, currently boasting a dividend yield of 7.74%, it is also operating with a significant debt burden, as highlighted by one of the InvestingPro Tips. This is a critical factor for investors to consider when assessing the company's long-term financial stability.
Despite a challenging financial position, FAT Brands has demonstrated strong revenue growth over the last twelve months, with a 17.98% increase, and an even more impressive quarterly revenue growth of 52.81%. This indicates a robust expansion in its business operations, which could be a positive sign for future profitability. However, the company is not currently profitable, with a negative P/E ratio of -1.1, as per the latest InvestingPro Data. Moreover, the data shows that the company's stock price has experienced a large uptick over the last six months, with a 26.27% return.
Investors looking for more detailed analysis and additional InvestingPro Tips can find them on the InvestingPro platform. For instance, there are insights on the company's cash burn rate and short-term obligations compared to its liquid assets, which are crucial for evaluating the financial health of FAT Brands. In total, there are 14 additional InvestingPro Tips available, which can be accessed for a deeper dive into the company's performance and outlook.
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