Monday, April 25, 2022

Item 9 Labs (INLB)
Notes from NobleCon18

Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space by 650,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.

Joe Gomes, Senior Research 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.

NobleCon 18. Item 9 Labs CFO Bobby Mikkelsen presented at NobleCon18. The Company’s franchising strategy and expansion were the main focus of the presentation. A rebroadcast is available here.

Reg.  A Recap. Recall that in March of 2022, Item 9 Labs launched a regulation A offering of 28 million units of one share and one-half warrant, with a maximum proceed of $67.2 million. Management highlighted this offering in their presentation with the purpose of expanding the Unity Rd. franchise national footprint and growing the product into new markets, similarly to their expansion into New …

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. 

 

Image Credit: Mike (Flickr)

April 20 Growing as a Day of Cannabis Recognition

 

Did you get your significant other a gift for 4/20 this year? Probably not, it isn’t considered a traditional mainstream gift-giving day like Valentines or Christmas. After all, April 20 recognizes, among other things, the counterculture that didn’t care much for the mainstream. So why would it become commercial in that way — the origin has more to do with a push for access and legalization. But there is a huge uptick in sales leading up to this day. And while many mainstreamers, myself included, only heard of the “420 code” a year or two ago, it is getting far more buzz than ever, and undoubtedly this will be even greater in the coming years.

What it Means for the Industry

Commercial cannabis providers would be missing an opportunity if they didn’t leverage the day’s recognition in a “Cinco de Mayo” meets “St. Patty’s Day” marketing effort. And they are. To confirm this I asked Margot Micallef the founder and CEO of GABY Inc. (GABLF) if 4/20 is a big day for dispensaries. She was gracious enough to take some time away from discussions with investors at NobleCon18 to respond. Ms. Micallef quickly said, “It’s Christmas for cannabis consumers!” She explained, “Consumers wait for it with anticipation and retailers love it because it brings consumers into their stores.”  

In a recent article, MJBiz.com refers to the day as “As the biggest shopping day of the year for the cannabis industry…” They say, leading up to 4/20/22 businesses were preparing by stocking more of their more perishable items such as rolled leaf.

Many dispensaries are providing discounts and sales this week to bolster even more traffic as the biggest shopping day of the year for the recreational sector of the industry peaks. Part of the preparation includes a focus on selling flower, mainly in the form of pre-rolls.

Just as Mother’s Day and Valentine’s is the high point of the year for selling roses and chocolate, the third week in April, the unofficial April 20 marijuana holiday resembles mainstream retail’s Black Friday shopping day after Thanksgiving in that consumers flock to cannabis stores to stock up on heavily discounted products. Most companies spend months preparing for this period.

The cannabis industry estimates that sales increase by about 30%-50% the week of 4/20. Using data from Headset, sales compared to an average week can be even higher. 

Broken out into product categories, the data forecasts week over average week increases of:

• Vape Pen +92%
• Pre-Rolls + 126%
• Edibles +124
• Flower +135%
• Concentrate 152%

If 4/20 grows as the day to recognize the efforts of the counterculture and all subsequent movements to provide more freedom of choice, it will serve the industry well. Investors should take note, perhaps it could even become a benchmark for the cannabis business similar to Black Friday has for other retailers. I spoke with Justin Dye, Chairman and CEO of Schwazze (SHWZ). Schwazze is the largest cannabis company in Colorado by revenue. Justin was also busy with investors at NobleCon18, but took time to discuss the industry and the opportunity. Dye said, “The cannabis industry is maturing and a terrific growth sector.” He explained, “The industry is countercyclical, and trading at all-time lows. It is just a matter of time before meaningful catalysts such as safe banking regulation and continued legalization buoy the industry.”

Not unlike other industries that maintain their status most of the year, but have one or two celebrations that they “own,” The cannabis industry will certainly be well served by further elevating 4/20 as a day where even those that don’t partake all year long, participate in their own way.

Paul Hoffman

Managing Editor, Channelchek

Suggested Reading

Cannabis Legalization and the Road for Psychedelics

Psychedelic Laws and Investments May Follow Cannabis’ Success

Marijuana Hits the House This Spring

The Synergistic Effects of Crypto on Cannabis Businesses

 

Sources

https://mjbizdaily.com/how-cannabis-companies-are-capitalizing-on-420-amid-easing-covid-19-restrictions/

https://www.headset.io/solutions/retailers-and-dispensaries

https://www.vox.com/policy-and-politics/2019/4/19/18484698/what-is-420-meaning-marijuana-legalization

 

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FAT Brands Inc. Announces Second Quarter Cash Dividend on Class A Common Stock and Class B Common Stock

Research, News, and Market Data on FAT Brands

 

Los Angeles, CA, April 18, 2022 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT), a leading global franchising company and parent company of iconic brands including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Twin Peaks, Fazoli’s and 11 other restaurant concepts, announced today that its Board of Directors has declared the Company’s fiscal 2022 second quarter cash dividend of $0.13 per share on each outstanding share of Class A common stock and Class B common stock. The dividend is payable on June 1, 2022 to holders of record of Class A common stock and Class B common stock as of the close of business on May 16, 2022.

The declaration and payment of future dividends, as well as the amounts thereof, are subject to the discretion of the Company’s Board of Directors. The amount and size of any future dividends will depend upon the Company’s future results of operations, financial condition, capital levels, cash requirements and other factors. There can be no assurance that the Company will declare and pay dividends in future periods.

About FAT (Fresh. Authentic. Tasty.) Brands

FAT Brands Inc. (NASDAQ: FAT) (the Company) is a leading global franchising company that strategically acquires, markets and develops quick service, fast casual and casual dining restaurant concepts around the world. The Company currently owns seventeen 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, Ponderosa and Bonanza Steakhouses and franchises and owns over 2,300 units worldwide. For more information, 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 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, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the documents 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 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.

Investor Relations:
ICR
Lynne Collier
IR-FATBrands@icrinc.com
646-430-2216

Media Relations:
Erin Mandzik
emandzik@fatbrands.com
860-212-6509

Fatburger Rolls Out First Theme Park Location at Six Flags Great Adventure

Research, News, and Market Data on FAT Brands

 

LOS ANGELES, April 18, 2022 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc., parent company of Fatburger, is pleased to announce that Fatburger has officially opened its first theme park location to date at Six Flags Great Adventure in Jackson, NJ. The restaurant marks the second Fatburger in the state and will provide parkgoers with the chain’s famous cooked to order burgers, fries, and milkshakes.

“We have been exploring opportunities to make this growth move for some time and are pleased that we are able to make our foray into this space with such a strong partner as Six Flags,” said Jake Berchtold, COO of FAT Brands’ Fast Casual Division. While there are a number of new attractions at the park this year, we hope our delicious burgers and fries are the first to catch the eye of parkgoers.”

Ever since the first Fatburger opened in Los Angeles 70 years ago, the chain has been known for its delicious, grilled-to-perfection and cooked to order burgers. Founder Lovie Yancey believed that a big burger with everything on it is a meal in itself; at Fatburger “everything” is not just the usual roster of toppings. In addition to its famous burgers, the Fatburger menu also includes Skinny Fries, Chili Cheese Fries and milkshakes made from 100% real ice cream.

“At Six Flags Great Adventure, we’re known for our record-breaking rides and innovations. We’re thrilled to elevate our food offerings with the very first theme park Fatburger location and to bring a taste of Hollywood to our park,” said Six Flags Great Adventure President John Winkler.

For more information or to find a Fatburger near you, please visit www.fatburger.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 over 2,300 units worldwide.

About Fatburger

An all-American, Hollywood favorite, Fatburger is a fast-casual restaurant serving big, juicy, tasty burgers, crafted specifically to each customer’s liking. With a legacy spanning 70 years, Fatburger’s extraordinary quality and taste inspire fierce loyalty amongst its fan base, which includes a number of A-list celebrities and athletes. Featuring a contemporary design and ambience, Fatburger offers an unparalleled dining experience, demonstrating the same dedication to serving gourmet, homemade, custom-built burgers as it has since 1952 – The Last Great Hamburger Stand^™.

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

Elite Education Group International CFO Zhenyu Wu & Director Craig Wilson provide a preview of their upcoming presentation at NobleCon18 NobleCon18 – Noble Capital Markets 18th Annual Small and Microcap Investor Conference – April 19-21, 2022 – Hard Rock, Hollywood, FL 100+ Public Company Presentations | Scheduled Breakouts | Panel Presentations | High-Profile Keynotes | Educational Sessions | Receptions & Networking Events Free Registration Available – More Info News and Advanced Market Data on EEIQ NobleCon18 Presenting Companies About Elite Education Group Elite Education Group International Limited (“Elite Education” or the “Company”), through its subsidiaries Quest Holding International LLC and Highrim Holding International Limited, provides comprehensive education solutions for domestic and international students interested in university and college degree programs in the US, Canada and the UK. The Company recently acquired 80% of the equity of EduGlobal College, based in British Columbia, Canada, which focuses on English proficiency educational programming for students pursuing academic degrees. The Company also recently acquired the right to a controlling equity ownership position in Davis College, a career training college located in Toledo, Ohio. In addition, the Company has a recruiting relationship with the regional campuses of Miami University located in Oxford, Ohio (“the MU Regional Campuses”), where it maintains residential facilities, a full-service cafeteria, recreational facilities, shuttle buses and an office for the regional campuses that provides study abroad and post-study services for its students; these facilities are not owned, maintained, operated or are a part of Miami University. The Company also acts as a recruiting agent for the University of the West of Scotland (through The Education Group (London) Ltd) and Coventry University, both of which are located in the United Kingdom. For more information, please visit www.eei-global.net.

1-800-FLOWERS.COM, Inc. to Release Results for its Fiscal 2022 Third Quarter on Thursday, April 28, 2022

Research, News, and Market Data on 1-800-FLOWERS.COM

 

JERICHO, N.Y.–(BUSINESS WIRE)– 1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS),a leading provider of gifts designed to help customers express, connect and celebrate, today announced that the Company will release financial results for its fiscal 2022 third quarter (ended 3/27/22) on Thursday, April 28, 2022. The press release will be issued prior to market opening and will be followed by a conference call with members of senior management at 8:00 a.m. (ET).

The conference call will be available via live webcast from the Investor Relations section of the Company’s website at 1800flowersinc.com. A recording of the call will be posted on the website within two hours of the call’s completion. A telephonic replay of the call can be accessed beginning at 2:00 p.m. (ET) on April 28, 2022, through May 5, 2022, at: (US) 1-877-344-7529; (
Canada) 855-669-9658; (International) 1-412-317-0088; enter conference ID #:5119258. If you have any questions regarding the above information, please call the Investor Relations office at (516) 237-6131.

Special Note Regarding Forward-Looking Statements:
Some of the statements contained in the Company’s scheduled Thursday, April 28, 2022, press release and conference call regarding its fiscal 2022 third quarter (ended 3/27/22) results, other than statements of historical fact, may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. For a more detailed description of these and other risk factors, please refer to the Company’s SEC filings including its Annual Reports and Forms 10K and 10Q available at the Investor Relations section of the Company’s website at 1800flowersinc.com. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in the scheduled conference call and any recordings thereof, or in any of its SEC filings, except as may be otherwise stated by the Company.

About1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help customers express, connect and celebrate. The Company’s e-commerce business platform features an all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery®, Vital Choice®, Stock Yards® and Simply Chocolate®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral and gift industry service provider offering a broad-range of products and services designed to help members grow their businesses profitably; Napco?, a resource for floral gifts and seasonal décor; DesignPac Gifts, LLC, a manufacturer of gift baskets and towers; and Alice’s Table®, a lifestyle business offering fully digital livestreaming floral, culinary and other experiences to guests across the country. 1-800-FLOWERS.COM, Inc. was recognized among the top 5 on the National Retail Federation’s 2021 Hot 25 Retailers list, which ranks the nation’s fastest-growing retail companies. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.

FLWS-COMP
FLWS-FN

Investor:

Joseph D. Pititto

(516) 237-6131

invest@1800flowers.com

Media:

Kathleen Waugh

(516) 237-6028

kwaugh@1800flowers.com

Source: 1-800-FLOWERS.COM, Inc

FAT Brands Announces Michael G. Chachula as Chief Information Officer

Research, News, and Market Data on FAT Brands

 

Global Restaurant Fr anchising Company Hires Award-Winning IT Veteran to Support Growing Brand Portfolio

LOS ANGELES, April 14, 2022 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc., announces the hiring of its first Chief Information Officer, Michael G. Chachula. Chachula joins FAT Brands with over 25 years of senior management experience in business and technology and will be focused on delivering scalable, sustainable, and efficient technology platforms across the portfolio and franchise system to aid in the growth of the company.

A seasoned executive with experience across the financial services, consumer goods, pharmaceuticals, and hospitality industries, Chachula has a track-record of identifying and implementing innovative technological solutions that drive further revenue growth. Most recently, Chachula was the Head of Digital and Revenue Growth for The Coffee Bean & Tea Leaf^®. He focused on delivering an enterprise POS solution, CRM, marketing automation, and cross-channel Omni-Channel growth solutions for the brand and its franchise system. Prior to that, Chachula served as the Head of Technology and Executive Director for IHOP^® Restaurants within the Dine Brands Global Inc. portfolio. While at IHOP, Chachula introduced online ordering, delivery, POS, and CRM alternatives, technology footprint simplifications, and numerous other technology improvements, focusing on corporate and franchisee scalability, enablement, and profitability.

In addition, under Chachula’s leadership, IHOP was presented with CIO Magazine’s 2018 CIO 100 award for in-car marketplace ordering through the dashboard console and natural voice ordering on Amazon’s Alexa as well as Google Home. These initiatives changed the brand’s narrative, moving IHOP to the forefront of technology innovation, providing new and exciting experiences for customers.

“Michael’s experience is a perfect fit to support the growing FAT Brands’ portfolio,” said Thayer Wiederhorn, Chief Operating Officer of FAT Brands. “Michael’s extensive technology background and industry knowledge will help FAT Brands strengthen our technology ecosystem, develop strategic partnerships, and support our domestic and international growth, which, in turn, will enable our company and franchisees to become more efficient and profitable.”

“I am so pleased to join FAT Brands, a company with a proven business model and incredibly talented management team,” said Michael Chachula. “Throughout the pandemic, technology has been front and center in the restaurant space, and, as we look to a post-COVID world, it will be even more imperative to have strong systems in place at the corporate, franchisee and consumer level. I look forward to amplifying what is currently in place and identifying new solutions that will keep FAT Brands at the forefront of our industry.”

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 over 2,300 units worldwide.

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

Source: FAT Brands Inc.

Wednesday, April 13, 2022

RCI Hospitality (RICK)
Strong Preliminary 2Q22 Sales

RCI Hospitality Holdings, Inc. through its subsidiaries owns and operates establishments that offer live adult entertainment, restaurant, and/or bar operations. The company also owns and operates a communication company serving the adult nightclubs industry. RCI’s operating business segments includes Nightclubs and Bombshells restaurants and bars. It operates nightclubs through the following brands: Rick’s Cabaret, Vivid Cabaret, Tootsie’s Cabaret, Club Onyx, and Jaguars Club. In the restaurants segment, the company is building a chain of Bombshells Restaurants and Sports Bars in Dallas, Austin, and Houston, Texas.

Joe Gomes, Senior Research 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.

Club and Bombshells Sales. RCI reported preliminary second quarter 2022 sales for the nightclubs and Bombshells restaurants of $63.0 million. Same store sales for the quarter rose 9.0% and are up 14.8% for the first six months. This number does not include non-core operations. We projected full 2Q22 revenue of $65.3 million. We expect RCI to report full 2Q22 results by May 10th.

Record March.  RCI achieved a record month in March, with sales of $24 million, a strong indicator of future normalized performance, in our view. The October acquisitions continue to improve, with the 11 clubs recovering to 95% of their March 2019 sales. Sales for northern clubs hit a twelve month high in March as COVID restrictions eased …

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’ Quick-Service Division Continues Strong Growth Momentum, Signing Development Agreements Totaling Over 50 New Stores

Research, News, and Market Data on FAT Brands

 

Global Franchise Group, Now FAT Brands’ Quick-Service Division, Experiences Strong Franchisee Demand Following June 2021 Acquisition

LOS ANGELES, April 13, 2022 (GLOBE NEWSWIRE) — FAT (Fresh. Authentic. Tasty.) Brands Inc., parent company of Round Table Pizza, Great American Cookies, Marble Slab Creamery, and 14 other restaurant concepts, announces its Quick-Service Division has signed 20 new development deals, totaling over 50 additional units, following the acquisition of Global Franchise Group in June 2021. The acquisition marked FAT Brands’ foray into both the snack and pizza categories, adding the following brands: Round Table Pizza, Great American Cookies, Marble Slab Creamery, Hot Dog on a Stick and Pretzelmaker.

Since the formation of the Quick-Service Division, composed of the brands from the Global Franchise Group acquisition, demand has been high for new franchises, in particular, amongst existing franchisees. The Great American Cookies & Marble Slab Creamery co-branded restaurant model continues to be attractive to new and existing franchisees alike with new deals in areas including Nashville, Tenn., Houston and Shreveport, La. Round Table Pizza is also deepening its presence in California, with agreements signed for nine new locations to open throughout the state in the coming years. Additional deals were also signed for Great American Cookies, Marble Slab Creamery, Hot Dog on a Stick and Pretzelmaker. In total, there are over 150 units in the pipeline in the Quick-Service Division with over 30 locations set to open their doors in 2022.

“While the pandemic has certainly impacted the restaurant space, we are so fortunate to have a deep store pipeline in addition to solid same-store-sales growth,” said Jenn Johnston, President of FAT Brands’ Quick-Service Division. “In the fourth quarter of 2021, same-store-sales within the division were up 10.6% in comparison to 2019 and up 16.1% in comparison to 2020. Since joining FAT Brands, we have increased our scale, offered franchisees access to new services, and have formed new synergies at both the brand and corporate level.”

“The Quick-Service brands have been a strong addition to the FAT Brands portfolio,” said Taylor Wiederhorn, Chief Development Officer of FAT Brands. “In just nine months we have made incredible traction in not only integrating the brands, but also in signing new development deals. We look forward to continuing to broaden the division’s presence on a global level in the years to come.”

For more information on FAT Brands, please 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 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, 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

Image credit: RODNAE Productions

The Full Value of Marijuana on the U.S. Economy

 

Now that the Marijuana Opportunity Reinvestment and Expungement (MORE) Act has passed the House, the debate about the benefits of legalization will rage in the Senate before it votes. There’s no doubt the conversation will include reduced crime, reduced criminal justice costs, public health, and increased tax revenue while stimulating the economy. But, will their measure of economic stimulation and benefit be accurate?

Cannabis as an Economic Stimulant

As the economy has come into sharp focus as of late and impacts most Senator’s constituents, this may be the decider that changes the minds of those on the fence. Economic benefits may trump all others, allowing the bill to get the needed 60 votes, making the Oval Office the last hurdle toward legalization on a national level.

The economic benefit often focused on by state governments is that which is most easily measured, tax revenues. But as those in Washington know, a few extra jobs and a few extra dollars go a long way to stimulate economic growth. In this category, the cannabis industry has a lot to offer the country. Money changing hands for goods and services include the easy to recognize sales and the ancillary benefits of commerce beyond the doors of a dispensary.

Cannabis Industry’s Forecasted Benefit on U.S. Economy 2021-26

Data Source: MJBizfactbook

Marijuana Industry’s Impact (Beyond Sales)

Using data compiled by MJBizDaily, the total U.S. economic impact of marijuana sales that don’t include direct sales themselves, in 2022 is expected to rise 20% to reach $99 billion this year. And under the best estimates exceed $155 billion in 2026.

To measure and forecast the industry’s economic impact, the data team at MJBizDaily analyzed similar industries, consulted with economists, and then calculated and applied a standard multiplier of 2.8 on projected recreational and medical marijuana retail sales. The nature of a new and unique industry adds a greater element of unknown compared to forecasting other industries, but the methodology was well thought out and the measurements and factors created are as accurate as possible.

Beyond straight retail sales, which are also projected on the chart above, the industry includes farming, manufacturing, marketing, and hospitality. Marijuana production starts with agriculture at the farm. Economists use a multiplier of 1.9 on agricultural components. This equates to $11 billion for the U.S. economy, just in this category. To put it in a way that more visually shows the benefit, for every $10 consumers or patients spend at marijuana retail locations, an additional $18 will be injected into the economy.

That higher economic benefit comes from the day-to-day needs increased and then satisfied by workers in the cannabis industry, and then the further impact that includes spending on life’s necessities such as housing, transportation, entertainment, and more. Not very different than the massive impact that the stimulus checks had during the pandemic, money multiplies across the economy as it is spent and then put in someone else’s hands for their use.

Take-Away

Cannabis, as with other industries, has an impact on many other sectors that make its overall economic impact far greater than simply measuring the sales of cannabis. While the Senate and the President will consider many factors in deciding whether the MORE Act should become law, the overall positive economic impact should not be understated.

Paul Hoffman

Managing Editor, Channelchek

 

Suggested Reading

Marijuana Hits the House This Spring

Cannabis Bill Proposed by Republican House Member Softer on Marijuana Taxes

The Future of Cannabis Crosses Many Industries

Cannabis Customers Served by the Ice Cream Truck Delivery Model

 

Sources

https://thehill.com/news/house/3256370-house-approves-bill-legalizing-marijuana/

https://thehill.com/news/senate/3262866-democrats-face-tough-climb-on-winning-senate-approval-of-legal-marijuana/

https://www.cato.org/policy-analysis/effect-state-marijuana-legalizations-2021-update#history-state-level-marijuana-legalizations

https://mjbizdaily.com/wp-content/uploads/2022/04/2022-economic-impact-1.webp

https://mjbizdaily.com/marijuana-industry-will-add-nearly-100-billion-to-us-economy-in-2022/

 

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Bowlero Corp. to Participate in NobleCon18 – Noble Capital Markets’ Eighteenth Annual Investor Conference

Research, News, and Market Data on Bowlero

RICHMOND, Va., April 12, 2022 (GLOBE NEWSWIRE) — Bowlero Corp. (NYSE: BOWL) (“Bowlero”), the worldwide leader in bowling entertainment, today announced that Tom Shannon, Founder, Chairman and CEO, will be presenting at NobleCon18 – Noble Capital Markets’ Eighteenth Annual Investor Conference at the Hard Rock Hotel & Casino, Hollywood, Florida on April 20th – April 21st.

Admission is free for investors at any level, institutional through self-directed novices. Registration is now open at www.nobleconference.com/register/investor-guest.

A high-definition, video webcast of the presentation will be available the following day on Bowlero Corp’s Investor Relations website, ir.bowlerocorp.com, 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.

About Bowlero Corp.

Bowlero Corp. is the worldwide leader in bowling entertainment. 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. Bowlero Corp. is also home to the Professional Bowlers Association, which it acquired in 2019 and which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

Contacts
For Media:
Bowlero Corp Public Relations
pr@bowlerocorp.com

For Investors:

IRC, Inc.
Ryan Lawrence
Ryan.Lawrence@ircinc.com

Ashley DeSimone

Ashley.desimone@ircinc.com

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