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In a recent transaction, Mark Elenowitz, a director at Fat Brands, Inc. (NASDAQ:FAT), acquired 1,000 shares of the company’s Series B Cumulative Preferred Stock. The purchase, which took place on May 30, 2025, was executed at a price of $2.20 per share, amounting to a total transaction value of $2,200. The stock currently offers a substantial dividend yield of 24.67%, though InvestingPro analysis indicates the company faces significant financial challenges with a weak overall health score.
In addition to this acquisition, Elenowitz engaged in several derivative transactions on May 28, 2025. These involved the exercise of warrants to purchase common stock. Notably, a non-traded warrant was exercised to acquire 2,564 publicly traded warrants (FATBW) of the company at a nominal exercise price. The transaction was completed on a cashless basis, resulting in the issuance of 2,557 FATBW warrants to Elenowitz after withholding seven warrants to cover the exercise cost. The timing is notable as Fat Brands’ stock has declined by 27% over the past year, with the company facing challenges including rapid cash burn and high debt levels.
Following these transactions, Elenowitz’s holdings in Fat Brands include 10,200 shares of Series B Cumulative Preferred Stock. The transactions underscore Elenowitz’s ongoing involvement and investment in Fat Brands, a company known for its diverse portfolio of restaurant brands. For a comprehensive analysis of Fat Brands’ financial health and growth prospects, investors can access detailed metrics and expert insights through InvestingPro’s extensive research reports.
In other recent news, FAT Brands Inc. reported a challenging first quarter of 2025, with earnings and revenue results falling short of expectations. The company posted a net loss of $46 million, or $2.73 per diluted share, significantly missing the expected earnings per share forecast of -$0.936. Revenue for the quarter was $142 million, a 6.5% decrease from the previous year and below the forecasted $151.6 million. Loop Capital responded by lowering its price target for FAT Brands from $12 to $10, while maintaining a Buy rating on the stock.
Despite the disappointing financial results, FAT Brands’ strategic initiatives, including plans to open over 100 new locations in 2025, may provide growth opportunities. The company is also focusing on co-branding efforts and international expansion to drive future performance. Additionally, FAT Brands is exploring refinancing options and expects to achieve $50 million in incremental adjusted EBITDA from the new sites. The company remains committed to raising $75-$100 million in equity this year, with a significant portion aimed at debt reduction.
FAT Brands has also announced plans to refranchise its Fazoli’s restaurants, which could bring in $20-$25 million, further aiding its financial position. The company is actively working to reduce litigation expenses, which are expected to moderate in the coming quarters. As FAT Brands continues to navigate these financial challenges, its ability to execute on strategic initiatives will be closely monitored by investors and analysts.
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