FAT Brands (NASDAQ:FAT) announced the acquisition of the Smokey Bones Bar & Fire Grill restaurant chain from an affiliate of Sun Capital Partners. This strategic move represents the company’s foray into the barbecue space and serves to broaden its portfolio of polished dining chains.
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FAT Brands, which owns multiple restaurant brands, paid $30 million for the transaction. The company expects the acquisition to boost its annual adjusted EBITDA by an estimated $10 million. Moreover, it will add 61 new corporate locations under the FAT Brands family.
FAT Brands remains selective with acquisitions and focuses on acquiring brands that exhibit scalability and synergy with its current platform. Rob Rosen, Co-CEO of FAT Brands, said, “We are pleased to add another polished dining brand, which will provide more options for our sales team to offer our franchise partners to further their new unit development.”
Investors should note that organically and through acquisitions, the company has steadily expanded its portfolio of renowned restaurant brands, which has driven significant franchise interest. Another notable feature is the company’s focus on expanding its units and establishing new franchise development agreements. Furthermore, FAT Brands’ ability to seamlessly and cost-effectively integrate new brands into its portfolio is a key advantage as it broadens the range of offerings and store network. Considering this context, let’s delve into the Street’s recommendations for FAT Brands stock.
What is the Price Prediction for FAT Brands?
FAT Brands stock has risen over 50% year-to-date. Additionally, it boasts two unanimous Buy recommendations from Wall Street analysts. Moreover, the average price target set by these two analysts is $20, indicating a substantial upside potential of 184.9% from current levels.
