FAT Brands Stock Rises After Announcement Of Special Stock Dividend: Retail Sentiment Lags

Shares of FAT Brands Inc. ($FAT) rose 0.8% on Thursday as the company's board approved the distribution of a special stock dividend to FAT Brands’ common stockholders of shares of Class A Common Stock of Twin Hospitality Group Inc., the operating unit for its Twin Peaks and Smokey Bones restaurant brands, but retail sentiment lagged the price move. 

The distributed shares represent about 5% of the fully diluted shares of Class A Common Stock of Twin Hospitality, and the remaining shares of Twin Hospitality will continue to be held by FAT Brands immediately following the distribution, the company said.

No vote or action is required by the FAT Brands common stockholders to receive the special stock dividend of Twin Common Stock, which will be issued in book-entry form. Beginning on the day following the distribution date, all shares of FAT Brands Class A Common Stock and Class B Common Stock and Twin Common Stock will be separately traded only on a “regular way” market.

Sentiment on Stocktwits was muted following the annoucement. 

Wall Street analysts expect Fat Brands to post loss per share of $1.31 on revenue of $157.45 million for the next quarter.

FAT Brands  is a global franchising company in the fast casual, quick-service, casual dining space that owns 18 restaurant brands including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, and Great American Cookies.

Twin Peaks franchises and owns 115 restaurants in the United States and Mexico. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.