Category: Consumer

Lucky Strike Entertainment (LUCK) – A New Chapter as Lucky Strike

Posted on by cpereira@noblefcm.com


Tuesday, December 17, 2024

Lucky Strike Entertainment is one of the world’s premier location-based entertainment platforms. With over 360 locations across North America, Lucky Strike Entertainment provides experiential offerings in bowling, amusements, water parks, and family entertainment centers. The company also owns the Professional Bowlers Association, the major league of bowling and a growing media property that boasts millions of fans around the globe. For more information on Lucky Strike Entertainment, please visit ir.luckystrikeent.com.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Complete rebrand to Lucky Strike. On December 12, the company announced that it had completed its recently announced rebranding to Lucky Strike Entertainment, which was effective on December 16th. The newly branded company will trade on the NYSE under the symbol “LUCK” as of today.

An acquired brand. The company acquired Lucky Strike Entertainment in September of last year. At that time, management noted that the company would test the brand strength of Lucky Strike in comparison with the Bowlero brand. We believe that Lucky Strike has a strong brand presence and is a compelling change for the company. 


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Vince Holding Corp. (VNCE) – A Closer Look At The Recent Quarter

Posted on by cpereira@noblefcm.com


Monday, December 16, 2024

500 5th Avenue 20th Floor New York, NY 10110 United States Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 599 Key Executives Name Title Pay Exercised Year Born Mr. Jonathan CEO & Director 825.62k N/A 1958 Ms. Marie Fogel Senior VP and Chief Merchandising & Manufacturing Officer 633.19k N/A 1961 Mr. John Chief Financial Officer

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Solid Q3 Results. The company reported favorable Q3 revenue of $80.2 million and adj. EBITDA of $7.1 million, both of which were in line with our estimates of $81.5 million and $7.0 million, respectively. Furthermore, gross margin improved by 580 basis points from the prior year period. In our view, the solid results demonstrate the efficacy of the company’s initiatives to enhance its expense structure and improve gross margins.

Improved gross margin. The company’s strong gross margin improvement was largely driven by a 480bp improvement in product costs and reduced freight costs, with an 80bp contribution from lower promotional activity and discounting in its Direct To Consumer (DTC) segment. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – CVG Announces Election of Jeffrey S. Niew to Board of Directors

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on CVGI

NEW ALBANY, Ohio, Dec. 12, 2024 (GLOBE NEWSWIRE) — Commercial Vehicle Group (the “Company” or “CVG”) (NASDAQ: CVGI), a diversified industrial products and services company, today announced that its Board of Directors (the “Board”) has elected Jeffrey S. Niew (58 years old) as an independent director to the Board, effective December 16, 2024.

Jeffrey S. Niew

Mr. Niew is the President & CEO (since 2013) of Knowles Corporation, a global market leader of highly engineered solutions utilizing semiconductors and electronic components technologies across a wide array of products and end markets. He was formerly the Vice President of Dover Corporation and President and CEO (from 2011 to February 2014) of Dover Communication Technologies. In 2014, Mr. Niew led the spin-off of Knowles from its previous owner Dover Corporation to a NSYE publicly traded company. Mr. Niew joined Knowles Electronics LLC in 2000, and became Chief Operating Officer in 2007, President in 2008 and President and CEO in 2010. Prior to joining Knowles Electronics, Mr. Niew was employed by Littelfuse, Inc. (from 1995 to 2000) where he held various positions in product management, sales and engineering in the Electronic Products group, and by Hewlett-Packard Company (from 1988 to 1994) where he served in various engineering and product management roles in the Optoelectronics Group. Other Board Experience: Mr. Niew is a member of the Advisory Board of the University of Illinois College of Engineering. He holds a bachelor’s degree in mechanical engineering from the University of Illinois at Chicago.

“My fellow Board members and I are delighted to welcome Jeffrey to the Board,” said Robert Griffin, Chair of the Board of Directors. “His extensive experience with multi-unit operations across regions, as well as his current role leading a large, dispersed organization will be tremendous assets to our Board.”

“Being elected to the CVG Board of Directors is a significant honor,” said Mr. Niew. “I am excited to work alongside the Board’s distinguished leaders to help guide the Company into the future.”

Mr. Niew will stand for re-election at the Company’s 2025 Annual Meeting of Stockholders.

About CVG

At CVG, we deliver real solutions to complex design, engineering and manufacturing problems while creating positive change for our customers, industries, and communities we serve. Information about the Company and its products is available on the internet at www.cvgrp.com.

Investor Relations Contact:
Ross Collins or Stephen Poe
Alpha IR Group
CVGI@alpha-ir.com
Media Contact:
Patrick Woolford, Director, Communications
Patrick.woolford@cvgrp.com

Source: Commercial Vehicle Group, Inc.

1-800-Flowers.com (FLWS) – Highlights From NobleCon20

Posted on by cpereira@noblefcm.com


Friday, December 13, 2024

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

c

A transitional year. Revenue guidance is flat to down mid single digits, but should start to grow again next year. The key growth drivers are expected to be led by its innovation initiatives, introduction of new products (ie. most recently, Cheryl’s Ice Cream, Wolferman’s New York Style Bagels, and Greeting Cards), bundling products (ie. Harry & David’s baskets with Shari’s Berries), products with new price points, and driving repeat customers. Plus, the company believes there is more to do with its 1.1 million Passport Loyalty customers, which is 10% of its customer base but accounts for over 20% of its revenues.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

The ODP Corporation (ODP) – Presentation Highlights from NobleCon20

Posted on by cpereira@noblefcm.com


Thursday, December 12, 2024

Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NobleCon20. The ODP Corporation Co-CFO Adam Haggard and VP of IR Tim Perrott presented at NobleCon20. Highlights included are the Company’s pivot towards B2B, targeting new markets, and the return of value to shareholders. 

B2B Pivot. Noted in our previous report, ODP is accelerating its B2B pivot through leveraging its nationwide supply chain, extensive B2B customer base, compelling value proposition, and strong balance sheet. A recent B2B win involves the Company’s ODP Business Solutions with a recent key contract win that is worth up to $1.5 billion over 10 years. Another involves Veyer with a major contract with one of the world’s largest social media focused e-commerce companies to deliver warehouse and fulfillment services for their online sales. In our view, both contracts represent management’s focus on its efforts within the space.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Realtors Forecast 6% Mortgage Rates in 2025, Boosting Housing Market Optimism

Posted on by slightbourne@noblecapitalmarkets.com
Key Points
– National Association of Realtors forecasts a 6% average for 30-year fixed-rate mortgages in 2025, boosting housing affordability and demand.
– Housing starts projected at 1.45 million, with single-family units leading growth.
– Median existing home price expected to rise to $410,700, with a 2% annual increase in house prices.

The National Association of Realtors (NAR) has forecasted that the average U.S. 30-year fixed-rate mortgage will drop to around 6% in 2025, bringing much-needed relief to homebuyers and potentially reviving a sluggish housing market. This rate decrease is expected to make homeownership more accessible for many prospective buyers, helping to stimulate both new housing construction and sales of previously owned homes.

According to the NAR’s latest projections, the housing market will see about 4.5 million existing home sales in 2025, a slight improvement over current levels. House prices are anticipated to rise by approximately 2%, with the median price for an existing home reaching $410,700. This price increase aligns with the general trend in the market, but the forecasted decline in mortgage rates could provide relief to homebuyers struggling with affordability challenges.

In particular, the NAR’s prediction that mortgage rates will stabilize around 6% offers hope to those shut out of the market due to the higher rates seen in recent years. With the current mortgage rate hovering near 7%, many prospective homebuyers have been unable to afford median-priced homes. If rates do indeed fall to 6%, approximately 6.2 million households will be able to afford homes at the median price, giving a much-needed boost to the housing market. This is a stark contrast to the present situation where higher rates have made it difficult for many to qualify for loans, especially first-time buyers.

Over the past few years, the housing market has been affected by the Federal Reserve’s aggressive monetary policy tightening, which increased borrowing costs and led to a slowdown in home sales. Additionally, the so-called “rate-lock” effect has worsened the supply crunch. Many homeowners with mortgage rates below 5% have been reluctant to list their homes for sale, fearing they won’t be able to find a similarly low rate on a new home. As a result, the market has faced limited inventory, which has driven up home prices and further strained affordability.

To address the lack of available homes, builders have focused on constructing smaller homes, which have appealed to buyers seeking more affordable options. This has led to an increase in new home sales, which are expected to continue rising in 2025, with the NAR projecting 1.45 million housing starts, the bulk of them for single-family units. These new homes could provide much-needed inventory, helping to ease the supply issues that have plagued the market.

Despite the positive outlook for 2025, challenges remain. While mortgage rates are expected to decline, they are still relatively high compared to historical norms, and inventory levels are unlikely to return to pre-pandemic levels anytime soon. This ongoing supply shortage will continue to place upward pressure on prices, making homeownership more difficult for some buyers. Additionally, the affordability gap between different regions will continue to vary, with some markets remaining out of reach for many potential buyers.

Nonetheless, the prospect of lower mortgage rates has sparked optimism in the housing market. A stabilizing rate at 6% could provide the necessary boost to allow more buyers to enter the market, driving both demand for existing homes and new construction. This change would also give homebuilders more confidence to move forward with projects, further stimulating the economy.

The ongoing reduction in mortgage rates, alongside a resilient economy, could help buyers overcome affordability barriers, especially in more moderately priced markets. As 2025 approaches, all eyes will be on mortgage rates and the broader housing market to see if these predictions hold true and bring about a much-needed shift toward recovery.

CPI Data Confirms Fed’s December Rate Cut Path

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Consumer Price Index (CPI) rose 2.7% year-over-year in November, meeting economist expectations.
– Core inflation remains elevated at 3.3% annually, driven by higher shelter and service costs.
– Markets now strongly anticipate a 25-basis-point Federal Reserve rate cut in December.

The Bureau of Labor Statistics released November inflation data on Wednesday, showing consumer prices increased 2.7% year-over-year. This uptick from October’s 2.6% rise aligns with economist projections and solidifies expectations for the Federal Reserve to lower interest rates at its December meeting.

On a monthly basis, the CPI increased by 0.3%, the largest gain since April. Core inflation, excluding volatile food and energy prices, also rose 0.3% month-over-month and 3.3% annually for the fourth consecutive month. Sticky inflation in core components such as shelter and services continues to challenge the Federal Reserve’s goal of achieving a 2% inflation target.

Paul Ashworth, Chief North America Economist at Capital Economics, commented on the persistence of core inflation, noting that it remains a concern but is unlikely to derail the anticipated rate cut. “We don’t expect it to persuade the Fed to skip another 25bp rate cut at next week’s FOMC meeting,” he stated.

Shelter Inflation Moderates, Food Costs Persist

Shelter inflation contributed nearly 40% of the monthly CPI increase, though the annual gain of 4.7% marked a deceleration from October’s 4.9%. Both rent and owners’ equivalent rent showed their smallest monthly increases since mid-2021, suggesting potential relief in housing costs.

Meanwhile, food prices remain a sticky category for inflation. The food index rose 0.4% month-over-month, with notable increases in categories like eggs, which surged 8.2% in November after declining in October. Energy prices also edged higher, rising 0.2% month-over-month, while apparel and personal care costs saw noticeable gains.

Market and Policy Implications

Financial markets reacted positively to the CPI report, as fears of an upside surprise were unfounded. The odds of a 25-basis-point rate cut at the Fed’s December meeting increased to 97% following the release. However, economists remain cautious about potential inflationary pressures stemming from President-elect Donald Trump’s proposed policies, including tariffs and corporate tax cuts.

Seema Shah, Chief Global Strategist at Principal Asset Management, noted the Federal Reserve’s likely shift toward a more cautious approach after December. “We expect the Fed to move off autopilot in January, adopting a more cautious tone, and slowing its pace of cuts to just every other meeting,” Shah said.

As inflation trends remain in focus, the Federal Reserve’s decisions in the coming months will be critical in shaping the economic outlook for 2025.

Vince Holding Corp. (VNCE) – Q3 Is Illustrative Of Its Improving Margin Story

Posted on by cpereira@noblefcm.com


Wednesday, December 11, 2024

500 5th Avenue 20th Floor New York, NY 10110 United States Sector(s): Consumer Cyclical Industry: Apparel Manufacturing Full Time Employees: 599 Key Executives Name Title Pay Exercised Year Born Mr. Jonathan CEO & Director 825.62k N/A 1958 Ms. Marie Fogel Senior VP and Chief Merchandising & Manufacturing Officer 633.19k N/A 1961 Mr. John Chief Financial Officer

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q3 Results. The company reported Q3 revenue of $80.2 million, which was in line with our estimate of $81.5 million. Notably, gross margin improved by 580 basis points from the prior year period. We believe the solid results demonstrate the efficacy of the company’s initiatives to enhance its expense structure and improve gross margin.

Improved gross margin. The company’s strong gross margin improvement was largely driven by a 480bp improvement in product costs and reduced freight costs, with an 80bp contribution from lower promotional activity and discounting in its Direct To Consumer (DTC) segment. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FAT Brands (FAT) – Highlights from NobleCon20

Posted on by cpereira@noblefcm.com


Wednesday, December 11, 2024

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

NobleCon20. FAT Brands Chairman Andy Wiederhorn presented at NobleCon20. Highlights included FAT Brands’ acquisition strategy, Twin Peaks spin-off, and focus for 2025. A rebroadcast is available at https://www.channelchek.com/videos/fat-brands-inc-noblecon20-replay

Acquisition Strategy. Management noted the Company utilizes a near-term focus on brands that will accelerate growth for its Twin Peaks brand as well as drive revenue and profit at its cookie and pretzel factory. Smokey Bones is an example of accelerating Twin Peaks growth as select Smokey Bones are being converted into Twin Peaks due to having a similar format, providing more efficient conversions. The Nestle Toll House Café by Chip acquisition drove unit growth of Great American Cookies while also getting cookie dough business for its manufacturing facility.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Novolex to Acquire Pactiv Evergreen in $6.7 Billion Packaging Industry Merger

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– All-cash transaction creates leading food and beverage packaging manufacturer
– Combines 250+ brands and 39,000 SKUs across diverse packaging substrates
– 49% premium to Pactiv Evergreen’s pre-announcement stock price

Novolex and Pactiv Evergreen have announced a transformative $6.7 billion merger that will create a leading manufacturer in food and beverage packaging. The all-cash transaction, valued at $18.00 per Pactiv Evergreen share, represents a 49% premium to the company’s recent trading price.

The strategic combination brings together two complementary businesses, establishing an extensive packaging solutions provider with a comprehensive North American manufacturing and distribution network. By merging their portfolios, the companies will offer more than 250 brands and 39,000 product SKUs across multiple packaging substrates, including fiber, resin, and post-consumer recycled content.

Stan Bikulege, Novolex’s Chairman and CEO, emphasized the strategic rationale, highlighting the merger’s potential to create an innovative, sustainable, and customer-focused company. The transaction aims to accelerate product innovation, improve customer service, and enhance sustainability efforts through combined research and development capabilities.

The deal is backed by funds managed by Apollo and Canada Pension Plan Investment Board (CPP Investments), which will contribute approximately $1 billion and become a significant minority shareholder. Upon completion, expected in mid-2025, Pactiv Evergreen will become a privately held company.

Key strategic benefits include expanded service capabilities across the U.S., Canada, and Mexico, and increased resources for developing recyclable, compostable, and reusable packaging. The merger positions the combined entity to better meet evolving customer demands in grocery, retail, restaurant, and foodservice markets.

Michael King, Pactiv Evergreen’s President and CEO, described the transaction as a milestone that maximizes shareholder value and represents the next exciting chapter for the company. The merger builds on both companies’ recent operational improvements and focus on product innovation.

The transaction has received approval from Pactiv Evergreen’s Board of Directors and is subject to regulatory approvals and customary closing conditions. Upon completion, Novolex’s leadership will guide the combined organization, leveraging the strengths of both companies to create a packaging industry leader.

Release – FAT Brands Inc. to Participate in the Noble Capital Markets 20th Annual Emerging Growth Equity Conference

Posted on by dburczyk@noblecapitalmarkets.com

Research News and Market Data on FAT

LOS ANGELES, Dec. 02, 2024 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT), a leading global franchising company that owns 18 restaurant brands, today announced that Andy Wiederhorn, Chairman of FAT Brands, will present at NobleCon20 – Noble Capital Markets’ Twentieth Annual Emerging Growth Equity Conference at Florida Atlantic University, Executive Education Complex, in Boca Raton, FL. on December 3rd at 11:30 AM Eastern Standard Time.

A high-definition video webcast of the presentation will be available the following day under the Events & Presentations section on the Company’s Investor Relations website at FAT Brands Inc. – Events & Presentations, and as part of a complete catalog of presentations available at Noble Capital Markets’ Conference website: www.nobleconference.com and on Channelchek www.channelchek.com the investor portal created by Noble. The webcast will be archived on the company’s website, the NobleCon website, and on Channelchek.com for 90 days following the event.

For more information on FAT Brands, visit www.fatbrands.com.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Smokey Bones, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses and franchises and owns approximately 2,300 units worldwide. For more information, please visit www.fatbrands.com. 

About Noble Capital Markets, Inc.

Established in 1984, Noble Capital Markets is an SEC / FINRA registered full-service investment bank and advisory firm with an award-winning research team and proprietary investor distribution platform. We deliver middle market expertise to entrepreneurs, corporations, financial sponsors, and investors. Over the past 40 years, Noble has raised billions of dollars for companies and published more than 45,000 equity research reports. Noble launched www.channelchek.com in 2018 – an investor community dedicated exclusively to public emerging growth and their industries. Channelchek is the first service to offer institutional-quality research to the public, for FREE at every level without a subscription. More than 7,000 public emerging growth companies are listed on the site, and content including equity research, webcasts, and industry articles.

Investor Relations:

ICR
Michelle Michalski
IR-FATBrands@icrinc.com

Media Relations:

Erin Mandzik
emandzik@fatbrands.com
860-212-6509

FAT Brands (FAT) – Another Step

Posted on by cpereira@noblefcm.com


Tuesday, November 26, 2024

FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Step 2. FAT Brands completed the second step in its anticipated planned listing of its Twin Hospitality unit as a standalone public company. FAT successfully completed the refinancing of the whole business securitization credit facility of its Twin Peaks and Smokey Bones restaurant brands.

Details. The aggregate principal balance of the new Series 2024-1 fixed rate notes is $416.7 million across four tranches with a weighted average annual interest rate of 9.5%.  The interest rate on the new notes is modestly higher than the rate on the previous securitization notes. However, the first anticipated call date goes from January 2025 to October 2027. We would point out that if the new notes are not repaid or refinanced by October 2027, additional interest equal to 5.0% per annum will accrue on each tranche of notes. The noteholders also are receiving warrants to acquire an aggregate of 5% of the Class A common stock of Twin Hospitality.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Lifeway Foods (LWAY) – Another Rejection…And More

Posted on by cpereira@noblefcm.com


Monday, November 25, 2024

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Rejected. Lifeway’s Board rejected Danone’s revised offer to acquire all of the LWAY shares it currently does not own for $27 per share. The Board stated the “revised proposal substantially undervalues Lifeway and is not in the best interests of the Company and its shareholders or other stakeholders.” Danone has yet to respond.

The Third Party. Following the rejection, Edward and Ludmila Smolyansky called for Lifeway’s Board to immediately establish an independent special committee to evaluate and negotiate a transaction with Danone or other potential buyers. In addition, Edward and Ludmila are seeking public disclosure of any valuation analysis done by Kroll when Kroll assisted the Board in June 2023 to explore strategic alternatives.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.