Category: Consumer

Release – FAT Brands Announces Ken Kuick and Rob Rosen as Co-CEOs

Posted on by aweinsoff@channelchek.com

Research News and Market Data on FAT

MAY 01, 2023

Senior FAT Brands Executives A ppointed to Lead Global Restaurant Franchising Company

LOS ANGELES, May 01, 2023 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc. announces Ken Kuick and Rob Rosen as Co-CEOs, effective May 5, 2023. As previously announced, Andy Wiederhorn will step down as CEO and continue in his role as Chairman of the Board, where he will focus on the strategic direction of the company, the allocation of capital, and ensuring the management team executes the Company’s business plan while maintaining quality restaurant operations.

Joining FAT Brands in 2021, Mr. Kuick, Chief Financial Officer, and Mr. Rosen, Executive Vice President of Capital Markets, have both played an integral role in the growth of the Company with a focus on strategic growth initiatives, including acquisitions and driving company profitability. Mr. Kuick and Mr. Rosen will also continue in their respective roles as Chief Financial Officer and Executive Vice President of Capital Markets while assuming the Co-CEO role. Together, they will focus on driving forward the Company’s overarching goals of increasing organic growth through new store openings, growing the utilization of its manufacturing facility, and bolstering the success of high-growth brands, including Twin Peaks.

Mr. Kuick’s past roles include Chief Financial Officer, Noodles & Company, Chief Accounting Officer, VICI Properties, and Chief Accounting Officer, Caesars Entertainment Operating Company, a subsidiary of Caesars Entertainment. Mr. Rosen is a Wall Street veteran with over 30 years of experience in structured finance, banking, lending, and portfolio management. Mr. Rosen has held positions at Fleet Bank, Kidder Peabody, and Bank of Tokyo, and has 20 years of experience with Black Diamond Capital Management in a variety of management, board-level, and advisory capacities.

“Over the last few years, Ken and Rob have played a tremendous role in the unprecedented growth of FAT Brands,” said Andy Wiederhorn, CEO of FAT Brands. “Their financial acumen and track record for hitting key company benchmarks make them well-positioned to take on the CEO role together. I look forward to continuing to work with Ken and Rob in the Chairman of the Board position to aid in the continued success of FAT Brands.”

“Andy is a great leader and I’m extremely humbled to take on this new responsibility and drive forward the key goals of the company,” said Ken Kuick, Chief Financial Officer of FAT Brands. “We are fortunate to have such a talented team at FAT Brands and I see great opportunity ahead in building upon our positioning as one of the largest restaurant companies in the U.S.”

“I’m honored to take on the Co-CEO position of a company that continues to surpass growth expectations,” said Rob Rosen, Executive Vice President of Capital Markets at FAT Brands. “In the near term, Ken and I will look to build on the strong foundation FAT Brands has already laid, which includes our robust growth pipeline, exciting innovations, and a commitment to our franchisees and customers.”

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 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.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect expectations of FAT Brands Inc. (“we”, “our” or the “Company”) concerning future events and are subject to significant business, economic and competitive risks, uncertainties and contingencies, including but not limited to uncertainties surrounding the severity, duration and effects of the COVID-19 pandemic. These factors are difficult to predict and beyond our control, and could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other factors. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.

MEDIA CONTACT:
Erin Mandzik, FAT Brands
emandzik@fatbrands.com
860-212-6509

Release – ACCO Brands Corporation Declares Quarterly Dividend

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ACCO

04/28/2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that its board of directors has declared a quarterly cash dividend of $0.075 per share. The dividend will be paid on June 9, 2023, to stockholders of record as of the close of business on May 19, 2023.

“This is the Company’s 22nd quarterly cash dividend since it began paying dividends in 2018. The Company’s dividend has become an important part of our capital allocation strategy and we remain committed to supporting our quarterly dividend with our robust free cash flow. At the current stock price, on an annualized basis, our shareholders are receiving an almost 7% yield on their investment,” said Boris Elisman, Chairman and Chief Executive Officer of ACCO Brands.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Chris McGinnis
Investor Relations
(847) 796-4320

Julie McEwan
Media Relations
(937) 495-5717

Source: ACCO Brands Corporation

Release – Johnny Rockets Lands in United Arab Emirates with Abu Dhabi Opening

Posted on by aweinsoff@channelchek.com

Research News and Market Data on FAT

APRIL 27, 2023

All-American Chain’s Famous Burgers and Shakes Now Available in United Arab Emirates’ Capital City

LOS ANGELES, April 27, 2023 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc. announces the opening of Johnny Rockets in the United Arab Emirates. Situated in the country’s bustling capital city, Abu Dhabi, the new restaurant marks the first brick-and-mortar opening for franchise partner, Kitopi, who has a master franchise agreement with the global restaurant franchising company to open 136 brick-and-mortar locations in addition to 70 ghost kitchens throughout the Middle East.

To date, FAT Brands’ concepts Fatburger, Johnny Rockets, Elevation Burger and Buffalo’s Express have opened in 15 of Kitopi’s existing ghost kitchens in the region. In the coming weeks, the franchise partner will also be opening another brick-and-mortar Johnny Rockets location in Dubai.

“Since announcing our partnership with Kitopi in 2021, we have been impressed with their ability to successfully open and operate our brands,” said Jake Berchtold, COO of FAT Brands’ Fast Casual Division. “Now, as they begin to open brick-and-mortar locations, we are thrilled to continue this growth journey with them. The Middle East is ripe with expansion opportunities, and we look forward to bringing burgers, shakes, fries, and fun to Abu Dhabi with Johnny Rockets.”

The first Johnny Rockets restaurant opened June 6, 1986, on the iconic Melrose Avenue in Los Angeles. Since that time, the chain’s timeless all-American brand has connected with customers across the U.S. and in 25 other countries around the globe. Guests visiting the all-new location can enjoy a classic Johnny Rockets’ meal, a juicy, cooked-to-order burger paired with crispy fries and a decadent, hand-spun shake.

The Abu Dhabi Johnny Rockets is located at 108 Al Murihiban Street, Khalifa City, Abu Dhabi, UAE and is open Monday through Friday, 11 a.m. to 11 p.m., and Saturday and Sunday, 11 a.m. to 12 a.m.

For more information or to find a Johnny Rockets near you, please visit www.johnnyrockets.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 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.

About Johnny Rockets
Founded in 1986 on Melrose Avenue in Los Angeles, Johnny Rockets is an iconic, world-renowned, hamburger restaurant franchise that offers high-quality, innovative menu items including Certified Angus Beef® cooked-to-order hamburgers, veggie burgers, chicken sandwiches, crispy fries, and rich, delicious hand-spun shakes and malts. With over 325 locations in over 25 countries around the globe, this dynamic, lifestyle, the brand offers friendly service in an upbeat atmosphere of relaxed, casual fun. For more information, visit www.johnnyrockets.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the timing and performance of new store openings. Forward-looking statements reflect expectations of FAT Brands Inc. (“we”, “our” or the “Company”) concerning the future and are subject to significant business, economic and competitive risks, uncertainties and contingencies, including but not limited to uncertainties surrounding the severity, duration and effects of the COVID-19 pandemic. These factors are difficult to predict and beyond our control, and could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other factors. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release. 

MEDIA CONTACT:
Erin Mandzik, FAT Brands
emandzik@fatbrands.com
860-212-6509

Vera Bradley (VRA) – Additional Corporate Reorganization and Cost Reduction Plans

Posted on by cpereira@noblefcm.com


Thursday, April 27, 2023

Joe Gomes, 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.

Placing Her Stamp. Vera Bradley CEO Jackie Ardrey announced additional corporate organizational changes as well as targeting $12 million of incremental cost reductions, the majority of which should fall to the bottom line. We view the announcement as Ms. Ardrey putting her stamp on the Company from a management perspective, while right-sizing the expense structure of the Company.

New CFO. Michael Schwindle will join Vera Bradley as CFO on May 8th. Mr. Schwindle has previously worked with CEO Ardrey. Mr. Schwindle is a 30-year retail industry veteran, including 15 years as a CFO in such firms as accessory and jewelry retailer Claire’s, Fleet Farm, Payless ShoeSource, Harry & David, and Musician’s Friend. Mr. Schwindle began his career at Deloitte & Touche LLP.


Get the Full Report

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. 

If Bad Expectations are Fully Priced Into Stocks, Which Ones Could Outperform This Year 

Posted on by phoffman@channelchek.com
Image Credit:Maarten Takens (Flickr)

Highly Regarded Analyst Tells Investors How to Position for the Upturn   

Are recession worries fully baked into stock prices? At least one Wall Street analyst has publicly made her case this may be accurate. And she offers tips on what sectors may have more upside and on those that have factors working against them. While a recession still may occur before year-end, forward-looking stock investors may have fully priced that risk in – forward-looking investors may also be the reason the overall market is up on the year despite greater expectations of a recession. They are looking past any slowdown.

Stock market participants, many still down on last year’s price moves, have been extremely cautious in front of a Fed that is playing catch up in a fight against inflation. The rapid Fed Funds rate increases that began in March 2022, coupled with quantitative tightening, sank stocks, bonds, and even cryptocurrency holdings. While the economy did shrink for two consecutive quarters last year, there are many that expect a mild recession will begin at some point this year.

Those that do expect a bumpy economic ride and a rough landing point to high-interest rates, a weakening dollar, tech industry layoffs, and a Federal Reserve that is resolved to get inflation down as soon as possible.

Savita Subramanian, equity and quant strategist at Bank of America Securities, proposed to investors in a research note published on April 24, that these fears and recession worries have been in place for a while and may be largely baked into the market. She says, barring a sudden shock to the economy, it makes sense for investors to reintroduce riskier assets into their portfolios.

Her guidance on finding value is well thought out. Subramanian, proposes investors own stocks over bonds and cyclical stocks over defensive names. The reason given is that hedge funds and long-only funds are near maximum exposure in defensive industries such as health care, utilities, and consumer staples. The suggestion here is that the probabilities would lean toward a better risk-reward payoff for cyclical names.

Ms. Subramanian does not say an economic slowdown won’t occur; instead, her thinking seems to be that after raising the Federal Funds rate from near-zero to a range of 4.75% to 5%, there is more control should a downturn need to be dealt with by easing. When rates are at or near zero percent, there is less the Fed can do to stimulate growth. So far, we’ve made it through the first quarter, and now April with only a few disruptions in the banking sector.

“Even if a recession is imminent, the Fed has latitude to soften the impact after pushing rates up by 5%. And after the fastest hiking cycle ever, the only thing to ‘break’ so far is SVB,” Subramanian wrote.

In an article published in Barron’s this week the investment news publication wrote, “Some corners of Wall Street are feeling confident that there will be no recession and that the very things that make a recession appear likely–the inverted yield curve, inflation, and the recent banking crisis–actually guarantee that one won’t happen.”

This could be good news for investors that have been nervous about having money in a market that has been given much to be concerned about, and ver little to be jubilant about.

On Thursday, GDP (Gross Domestic Product) for the first quarter will be released. No one expects this to indicate a recession began then. Forecasters expect that the economy will show 2% growth, following growth of 3.2% and 2.6% in the third and fourth quarters of 2022. This is one of the cases where if the number surprises much higher, the market may expect the Fed to make bigger rate moves. If it surprises on the low side, markets may see it as a sign of an approaching recession.

Take Away

A highly regarded analyst joins others with thoughts that the market could be priced for a recession; this could be good for stocks. If true, investors may want to start looking past a recession. Those she is most positive on are riskier names. While funds and other investors are near maxed out in lower-risk holdings, there is far less upside for them. The bigger upswings can occur in the industries, market-cap sectors, and companies that have been given less attention due to recession fears.

Paul Hoffman

Managing Editor, Channelchek

Release – ACCO Brands Corporation Announces First Quarter 2023 Earnings Webcast

Posted on by aweinsoff@channelchek.com

Research News and Market Data on ACCO

04/21/2023

LAKE ZURICH, Ill.–(BUSINESS WIRE)– ACCO Brands Corporation (NYSE: ACCO) today announced that it will release its first quarter 2023 earnings after the market close on May 4, 2023. The Company will host a conference call and webcast to discuss the results on May 5 at 8:30 a.m. EST. The webcast can be accessed through the Investor Relations section of www.accobrands.com and will be available for replay.

About ACCO Brands Corporation

ACCO Brands, the Home of Great Brands Built by Great People, designs, manufactures and markets consumer and end-user products that help people work, learn, play and thrive. Our widely recognized brands include AT-A-GLANCE®, Five Star®, Kensington®, Leitz®, Mead®, PowerA®, Swingline®, Tilibra® and many others. More information about ACCO Brands Corporation (NYSE: ACCO) can be found at www.accobrands.com.

Christopher McGinnis
Investor Relations
(847) 796-4320

Julie McEwan
Media Relations
(937) 974-8162

Source: ACCO Brands Corporation

Lifeway Foods (LWAY) – Record Breaking Full Year Revenue

Posted on by cpereira@noblefcm.com


Tuesday, April 11, 2023

Joe Gomes, Managing Director – Generalist Analyst, 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.

FY22 Results. Lifeway reported record full year revenue of $141.6 million for 2022, up 18.9% y-o-y. Higher volumes of drinkable kefir, increased pricing, and a full year of Glen Oaks drove the increased top line. Gross margin of 18.9% was constrained due to increased raw material costs. Lifeway reported full year net income of $0.9 million, or EPS of $0.06, down from $3.3 million, or EPS of $0.21, for 2021.

4Q22. The fourth quarter was the 13th straight quarter of y-o-y net sales growth. Revenues came in at $35.8 million, up 15.7% y-o-y, but modestly below our $39 million projection. Lifeway generated $716,000 of net income, or EPS of $0.05, in the quarter, compared to a loss of $93,000, or a loss of $0.01/sh, in 4Q21. We were at net income of $1.1 million, or $0.07/sh.


Get the Full Report

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 Inc. (FAT) – A New Board

Posted on by cpereira@noblefcm.com


Tuesday, April 04, 2023

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, Managing Director – Generalist Analyst, 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.

Board Changes. Yesterday, FAT Brands announced a nearly wholesale change to its Board. We believe the changes were made in an effort to help separate the Company from the ongoing derivative lawsuits and the government investigation, as well as give the still to be appointed new CEO a “clean slate” to execute the business plan. In addition, FAT Brands elected “controlled company” status for purposes of the government governance rules. While always a controlled company, FAT Brands had previously elected to follow the “majority of independent directors” rule. The move to “controlled company” status could save the Company about $1 million per year.

The New Board. Of the former directors, only Andrew Wiederhorn and Lynne Collier remain. Additions to the Board include five insiders, including Mr. Wiederhorn’s three sons, all of whom hold leadership positions at FAT Brands, and three independent directors — Mark Elenowitz, Kenneth Kepp, and Tyler Child.


Get the Full Report

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. 

Strange Price Movement for AMC and APE – Here’s Why

Posted on by phoffman@channelchek.com
Image: AMC Theatre W. Palm Beach, Fl

AMC and APE Now Have a Most Unusual Combined Stock Chart

AMC Entertainment (AMC – common) took a big hit on Tuesday (April 4), shaving over 20% off its per-share price. At the same time its preferred shares (APE) climbed over 10% as the so-called meme-stock movie-theater company announced it reached a settlement with shareholders over its planned stock conversion. The settlement with the group of mostly institutional shareholders allows management to complete its plan to convert its AMC preferred equity, or APE, units into shares of AMC common stock.

Where are the Arbitrageurs?

After the announcement that the case had been settled, AMC stock dropped, and simultaneously APE units rose to. Arbitrage opportunities may still exist for those that expect the price of the two share types to converge as the conversion moves even closer to reality with final approval still needed.

APE units began trading in August 2022 after management announced a unique dividend that paid each AMC shareholder one APE unit for every common share they owned. The APE shares eventually experienced the market pricing them at a steep discount to the AMC common shares.

The Complaint

At issue in the litigation was the claim that shares would be diluted without offsetting compensation to existing shareholders. It was initiated by a group of mostly large shareholders (think pension funds). The terms of the settlement, announced in a filing by AMC late Monday, will allow common stockholders to receive one share for every 7.5 shares held after the reverse stock split. The payment would represent around 4.4% of AMC’s stock, or 6.9 million shares.

Source: Koyfin

“The settlement provides investors with additional shares in satisfaction of their voting claims, while allowing the company to move forward with its plan to pay down its debt,” plaintiff lawyers from Bernstein Litowitz Berger & Grossmann, Grant & Eisenhofer, Fields Kupka & Shukurov, and Saxena White said in a joint statement.

Management’s Goal

As of the end of 2022, the company owed $4.9 billion in debt. The settlement may allow the company to raise in excess of this amount which could go a long way in helping management reach its goal of ridding itself of debt.

A Word on Price Discrepancy

Arbitrage can occur when the price of preferred units is lower than the price of common shares, even though the ownership level is substantially similar, or if the dividend rate on the preferred units is higher. In these scenarios, an investor can buy the preferred units and sell the common shares short (i.e., borrow the shares and sell them with the hope of buying them back at a lower price in the future), thus profiting from the difference in prices.

As the price movement in the chart above shows, related arb. opportunity pre-announcement are likely to have paid well.

Arbitrage can also occur when the price of common shares is lower than the price of preferred units, even though the shares should trade in parity or the dividend rate on the preferred units is lower. In this scenario, an investor can buy the common shares, sell the preferred units short, and receive a higher return on investment by benefiting from the price difference.

There is not yet “final approval” on AMC’s next step. However, the shares and reverse split are shareholder approved and the settlement clears the way for the final board decision.

Paul Hoffman

Managing Editor, Channelchek

Bassett Furniture (BSET) – Environment More Challenging Than Expected

Posted on by cpereira@noblefcm.com


Monday, April 03, 2023

Bassett Furniture Industries, Incorporated manufactures, markets, and retails home furnishings in the United States. The company operates in three segments: Wholesale, Retail, and Logistical Services. It is involved in the design, manufacture, sourcing, sale, and distribution of furniture products to a network of company-owned and licensee-owned Bassett Home Furnishings (BHF) retail stores, as well as independent furniture retailers; and wood and upholstery operations. As of September 16, 2017, the company operated a network of 91 company-and licensee-owned stores. It also provides shipping, delivery, and warehousing services to customers in the furniture industry. In addition, the company owns and leases retail store properties. It also distributes its products through other multi-line furniture stores, Bassett galleries or design centers, specialty stores, and mass merchants. Bassett Furniture Industries was founded in 1902 and is based in Bassett, Virginia.

Joe Gomes, Managing Director – Generalist Analyst, 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.

1Q23 Results. Bassett missed on both our top and bottom line projections as the hangover from 2022 continued. The Company reported revenue of $107.7 million, short of our $111 million estimate, and down 8.6% y-o-y. Wholesale revenue declined 16%, while Retail revenue rose 1.3%. Operating income was $2.7 million, down from $6.5 million in 1Q22. Bassett reported net income of $1.4 million, or $0.16 per share, compared to net income from continuing operations of $4.3 million, or $0.44 per share, in the prior year. We had forecast EPS of $0.30.

Operating Environment. The post-COVID operating environment remains challenging. While backlog levels have returned to more normalized levels, the Company continues to work through higher cost inventory as well as a shift in consumer dollars away from furniture. Wholesale orders fell 18% y-o-y in 1Q23, while retail written orders were off 16% y-o-y.


Get the Full Report

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 – FAT Brands Announces Launch of New Charitable Arm, FAT Brands Foundation

Posted on by aweinsoff@channelchek.com

Research News and Market Data on FAT

MARCH 22, 2023

 DOWNLOAD PDFPDF FORMAT (OPENS IN NEW WINDOW)

New 501(c)(3) Organization Formed to Further Unite Communities in Which Restaurant Franchising Company Operates

LOS ANGELES, March 22, 2023 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc., a leading global franchising company that owns restaurant brands including Johnny Rockets, Fatburger, Round Table Pizza, Twin Peaks, Fazoli’s and 12 other concepts, is pleased to announce the official launch of its newly formed 501(c)(3) charitable organization, FAT Brands Foundation. Created to amplify the existing charitable efforts of its 17-brand portfolio, the foundation will partner with local non-profit organizations in areas in which FAT Brands has a presence to provide essential programs to help families and communities thrive.

“Giving back has always been a part of the FAT Brands DNA,” said Jessica Wiederhorn, President of FAT Brands Foundation and Head of Non-Traditional Sales and Partnerships at FAT Brands. “With our company continuing to grow in size, we wanted to take our charitable efforts to the next level by launching a new arm that more broadly supports our employees and customers’ beloved communities. We are excited to be officially live and to have the opportunity to become more engrained with local non-profits that are committed to making a positive impact in the markets where we operate. Our mission is wide-ranging so we can meaningfully serve each community on a local, specific level.”

The foundation was seeded with a $250,000 donation from FAT Brands upon its inception and will continue to receive support from its parent company to further the directive of the organization in the years to come. For non-profits interested in applying for a grant or for those interested in donating to the foundation, please visit www.fatbrands.com/foundation.

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 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.

About FAT Brands Foundation
Founded in 2022, the FAT Brands Foundation was created to uplift and unite the communities in which FAT Brands operates. While the company’s 17-brand portfolio is deeply rooted in charitable initiatives both locally and nationally, FAT Brands, as an organization, is seeking to magnify those efforts further. The 501(c)(3) organization is aimed at partnering with local non-profit organizations to provide essential programs to help families and communities thrive.

MEDIA C ONTACT :
Erin Mandzik, FAT Brands
emandzik@fatbrands.com
860-212-6509

Bowlero (BOWL) – Stock Slips Creating More Compelling Opportunity

Posted on by cpatches


Wednesday, March 22, 2023

Bowlero Corp. is the worldwide leader in bowling entertainment, media, and events. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. In 2019, Bowlero Corp. acquired the Professional Bowlers Association, the major league of bowling, which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

Michael Kupinski, Director of Research, 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.

Exercised the earn-out. In 2021, Bowlero issued 11.4 million “earn-out” shares exercisable should the shares trade at or above $15 for a 10 day  period. Given the recent price movement, the “earn-out” was achieved, and, as a result, Atairos Group and Thomas Shannon each received 4.9 million earn-out shares. Atairos subsequently sold the shares.

Increasing float. Atairos acquired the “earn-out” shares as part of the business combination agreement when Bowlero went public in 2021. Atairos could have sold up to 9 million shares under 144a, but only sold the exact number of “earn-out” shares. Atairos cannot sell additional shares until Bowlero’s next earnings date in mid-May. The sale of the 4.9 million earnout shares increased Bowlero’s public share float from 17.9% to 20.7% of total shares outstanding. 


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Michael Burry’s Chart Tweet is Worth Understanding

Posted on by phoffman@channelchek.com
M. Burry – Cassandra B.C. (Twitter)

To Show Banks at Risk, Michael Burry’s Picture Equals 1000 Words

Michael Burry has a well-deserved reputation for foreseeing approaching crises and positioning his hedge funds to benefit client investors. While he’s most famous for his unique windfall leading to and after the mortgage crisis of 2008-2009, the current banking debacle has him tweeting thoughts most days. His most recent bank-related tweet is worth sharing and, for most investors, needs some explaining.  

Recently Burry posted a chart of some large banks and their insured deposit base relative to their Tier 1 capital.

@michaeljburry (Twitter)

Common Equity Tier 1 Capital (CET1)

To best understand this chart it helps to be aware that for U.S. banks, the definition of Tier 1 capital is set by regulators. It’s an apples to apples measure of a banks’ financial strength and easily used to compare bank peers.  Overall it is the bank’s core capital, and helps to understand how well the banks financial infrastructure can absorb losses. It includes equity and retained earnings, as well as certain other qualifying financial instruments.

 

Unrealized Bank Losses

The sub-prime banking crisis of 2008 is different than what banks are struggling with now. The problem then was created by lax lending practices, including liar loans, floating rate mortgages with teaser rates, significant house flipping using these introductory (teaser) first year rates, and repackaging and selling the debt – often to other banks.

The current issue facing banks today is the prolonged period of rates being held down by monetary policy. Low rates makes for easy money and economic growth, but there is eventually a cost. The cost is overstimulus and inflation, then what is needed to fight inflation, in other words, higher rates.

Higher rates hurt banks in a number of ways. The most calculable is the value of their asssets, including publicly traded fixed rate obligations (Treasuries, MBS, municipal bonds, corporate bonds, other bank marketable CDs) all decline in worth when rates rise. The other way banks get hurt is that loans extend out when rates rise by a significant amount. As a bank customer, this is easy to understand, if you took out a 30-year mortgage two years ago, your rate is between 2.75%-3.50%. If mortgage rates move, as they did to 7%, the prepayment speeds on the loans extend out farther. That is to say fewer borrowers are going to add more to their principal payment each month, and those that may have bought another residence by selling the first and paying the loan off, are staying put. The banks had assigned a historic expected prepayment speed to each loan that represents their region, and the low rate loans are now going to take much longer to repay.

FDIC Insurance

Michael Burry (on assets as described above) used his Bloomberg to chart large bank unrealized losses to the potential for depositors to remove their uninsured deposits. Currently the FDIC is only obligated to insure bank deposits up to $250,000. Customers with deposits in excess of this amount (depending on how registered) leave their excess money at a single bank at their own risk.

It would seem logical for large customers and small, in this environment to check their own risk and bring it to zero.

The Wisdom of the Chart

The further up and to the right banks are on the chart, the more at risk the bank can be considered. This is because uninsured deposits equal more than 60% of liabilities, so prudent customers would move someplace where they are better protected.

However, if depositors do move money out of the banks listed here, the bank would have to either find new deposits, or stand to lose 30% or more by selling assets that are underwater because of rising rates. The banks are currently not easily able to go out into the market and attract money. Partially because we are now in a climate where even basic T-Bill levels would be high for a bank to pay, but also because there is less money supply (M2) in the system.

@michaeljburry (Twitter)

Take Away

Michael Burry is a worth paying attention to. His communication is often through Twitter, and his tweets are often cryptic without context. His most recent set of tweets, including one commenting on the chart outlines what is happening with a number of banks that find themselves in the unenviable position of ignoring the Fed’s forward guidance on rates and very public inflation data.

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Paul Hoffman

Managing Editor, Channelchek

Sources

Cassandra B.C. on Twitter