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.
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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.
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.
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.
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.
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.
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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*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 (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.
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.
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.
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.
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.
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.
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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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.
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.
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.
Key Points: – October retail sales increased by 0.4%, surpassing economist expectations of 0.3%. – September’s retail sales were revised significantly higher to 0.8%, showing stronger-than-expected consumer spending. – While October data showed slower growth in some sectors, upward revisions to prior months suggest a strong consumption trend heading into Q4 2024.
The latest retail sales data for October has revealed a resilient U.S. consumer, with sales growing 0.4% from the previous month. This uptick exceeded economists’ expectations of a 0.3% rise, highlighting ongoing consumer confidence. Moreover, retail sales in September were revised upward significantly, from a previously reported 0.4% increase to a solid 0.8%, further indicating a stronger-than-anticipated spending trend in the U.S. economy.
According to the Census Bureau, the October increase in retail sales was largely driven by auto sales, which surged 1.6%. This surge in vehicle purchases, despite other sectors showing weaker growth, underlines the importance of the automotive sector to overall retail performance. However, excluding auto and gas sales, which are often volatile, the increase was more modest at just 0.1%. This was below the consensus estimate of a 0.3% rise, pointing to potential weaknesses in discretionary spending.
The October data, while showing signs of slower growth in certain areas, follows a pattern of upward revisions to previous months’ figures, suggesting a more positive overall trajectory for the economy. The September retail sales revisions revealed that both the total and ex-auto categories had grown by 1.2%, far surpassing the initial estimates of 0.7%. This data is crucial, as it points to stronger-than-expected consumer spending, which plays a vital role in supporting economic growth.
Economists are optimistic about the continued momentum in consumer spending, with many predicting another strong quarter for the U.S. economy as it heads into the final stretch of 2024. Capital Economics economist Bradley Saunders noted that the October slowdown in retail sales was somewhat overshadowed by the positive revisions for September, which suggested ongoing consumer strength. “Consumption growth is still going strong,” he commented, reflecting a generally optimistic outlook for the final quarter.
Kathy Bostjancic, Chief Economist at Nationwide, echoed this sentiment, stating that the October data suggested consumers were maintaining their upbeat spending habits as the year-end approached. This is seen as a positive indicator for the broader U.S. economy, suggesting that GDP growth will remain solid through the end of 2024.
This data arrives at a critical time for investors, as concerns over the Federal Reserve’s interest rate policy continue to loom large. While recent economic data, including October’s retail sales, have largely exceeded expectations, investors are keenly watching the Fed’s actions. Federal Reserve Chairman Jerome Powell has stated that the strength in the economy allows the central bank to take a more cautious approach in adjusting interest rates. There is ongoing debate about whether the Fed will make further rate cuts in 2024, especially as inflation remains a concern.
As the U.S. economy shows resilience, it remains to be seen whether consumers will maintain their spending habits amid possible economic uncertainties in the coming months. However, for now, the data points to continued growth and strength in retail sales, a crucial driver of overall economic health.
LOS ANGELES, Nov. 18, 2024 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc., (NASDAQ: FAT), a leading global franchising company and parent company of 18 iconic brands, is pleased to announce that Twin Hospitality Group Inc., the operating unit for its Twin Peaks and Smokey Bones restaurant brands, has priced the issuance of new notes to refinance its whole business securitization credit facility originated in October 2021. The aggregate principal balance of the new Series 2024-1 fixed rate notes (the “Notes”) is $416,711,000 across four tranches, with a weighted average interest rate of 9.5% per annum. The issuer of the Notes will be Twin Hospitality I, LLC, a wholly-owned subsidiary of Twin Hospitality Group Inc.
The Notes may be exchanged for a proportionate interest in Exchangeable Notes in two tranches, referred to as Class A2IIB2 (up to $326,876,000) and Class A2IIB2M2 (up to $404,587,000), which reflect in the aggregate the characteristics of the corresponding exchanged Notes.
Ken Kuick, Co-CEO of FAT Brands, said, “We are pleased to announce the successful pricing of the TWNP Series 2024-1 whole business securitization notes. This financing stabilizes Twin Peaks’ financial structure and represents a key milestone as we work toward the goal of creating a standalone public company.”
Kuick continued, “Additionally, the refinancing allows us to further drive the growth of Twin Peaks, our fastest-growing concept. Twin Peaks’ compelling unit economics continue to fuel strong demand from both existing and potential franchisees seeking new locations. Year to date, we have opened nine new lodges bringing our total to 115 Twin Peaks locations.”
Jefferies LLC acted as sole structuring agent and sole bookrunner for this transaction. Legal advisors were Katten Muchin Rosenman LLP for FAT Brands Inc., and King & Spalding LLP for Jefferies LLC.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security. The Notes have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.
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, Great American Cookies, Smokey Bones, 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 Twin Peaks Founded in 2005 in the Dallas suburb of Lewisville, Twin Peaks franchises and owns 115 restaurants in the United States and Mexico. Twin Peaks is the ultimate sports lodge featuring made-from-scratch food and the coldest beer in the business, surrounded by scenic views and wall-to-wall TVs. For more information, visit twinpeaksrestaurant.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 are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results, including consummation and benefits of the potential transaction discussed in this press release, to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the Form 10 Registration Statement filed by Twin Hospitality Group Inc., and the documents filed by FAT Brands Inc. from time to time with the SEC, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these risks, uncertainties and contingencies. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.
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.
Ups Offer. In an amended Schedule 13D filing on Friday morning, Danone upped their offer to acquire the shares of Lifeway not already owned to $27, all cash, from a prior $25. According to a letter filed with the amended 13D, Danone believes the “updated indicative price fully reflects the fundamental potential of the Company and provides Lifeway’s shareholders with the certainty of an attractive and immediate cash premium.”
3 Week Timing. Although Danone has yet to be granted access to any due diligence, Danone is prepared to conduct due diligence as soon as provided access to a data room. Danone also is ready to enter into immediate negotiations regarding the terms of a potential transaction. Subject to Danone being able to access immediately the information required as part of confirmatory due diligence and negotiating Transaction Documentation in parallel, Danone is confident in its ability to reach a definitive agreement in three weeks.
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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.
