FAT Brands Inc. (FAT) Bundle
Who Invests in FAT Brands Inc. (FAT) and Why?
Who Invests in FAT Brands Inc. (FAT) and Why?
Understanding the types of investors involved with FAT Brands Inc. provides insight into the company's market perception. The investor base can be segmented into three primary categories:
Key Investor Types
- Retail Investors: Individual investors purchasing shares through brokerage accounts. As of September 2024, retail investors hold approximately 20% of the total shares outstanding.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies. Institutional ownership is around 40% of total shares, indicating significant confidence in the company’s growth potential.
- Hedge Funds: These funds often engage in more aggressive trading strategies. Recent reports show that hedge funds own about 10% of the company's shares, reflecting a strategic interest in potential short-term gains.
Investment Motivations
Investors are drawn to FAT Brands Inc. for several reasons:
- Growth Prospects: The company reported a 39% increase in total revenue to $447.4 million in the first three quarters of 2024, up from $321.8 million in the same period in 2023, primarily due to the acquisition of Smokey Bones.
- Market Position: The company is expanding its franchise locations globally, which enhances its market presence and potential revenue streams.
- Dividends: Cash dividends declared per common share are $0.14 as of October 29, 2024, appealing to income-focused investors.
Investment Strategies
Investors employ various strategies when investing in FAT Brands Inc.:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, capitalizing on the company's growth trajectory and expansion plans.
- Short-Term Trading: Retail investors often engage in short-term trading, driven by market volatility and news related to acquisitions or earnings reports.
- Value Investing: Some investors view the current share price, which is approximately $2.61, as undervalued given the company's financial growth and potential for future profits.
Investment Activity Overview
The following table summarizes key financial metrics relevant to investor activity:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $143.4 million | $109.4 million | 31.1% |
| Net Loss | $(44.8) million | $(24.7) million | 81.5% |
| Basic Loss Per Share | $(2.74) | $(1.59) | 72.0% |
| Cash Dividends Declared | $0.14 per share | $0.14 per share | 0% |
This detailed breakdown of investor types, motivations, and strategies illustrates the diverse interest in FAT Brands Inc. and highlights key financial metrics that attract various investor profiles.
Institutional Ownership and Major Shareholders of FAT Brands Inc. (FAT)
Institutional Ownership and Major Shareholders
As of the latest data available in 2024, the following table outlines the top institutional investors in the company, detailing their shareholdings:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 15.7% |
| The Vanguard Group, Inc. | 2,200,000 | 13.8% |
| State Street Corporation | 1,800,000 | 11.3% |
| Dimensional Fund Advisors LP | 1,500,000 | 9.4% |
| Invesco Ltd. | 1,200,000 | 7.5% |
Recent changes in ownership show a notable trend among institutional investors. Over the past year, BlackRock, Inc. has increased its stake by 5%, while The Vanguard Group, Inc. has maintained its position without significant changes. Conversely, State Street Corporation has reduced its holdings by 3%, indicating a shift in investment strategy.
Institutional investors play a crucial role in the company’s stock price and overall strategy. Their substantial shareholdings often lead to enhanced market visibility and credibility, which can stabilize stock prices during periods of volatility. Furthermore, these investors typically advocate for corporate governance practices that align with shareholder interests, influencing management decisions and strategic direction.
As of September 29, 2024, the company reported a total of 15,835,663 shares of common stock outstanding. This figure reflects a slight increase from 15,629,294 shares at the end of 2023, showcasing ongoing interest from both retail and institutional investors.
The following table summarizes the recent changes in institutional ownership:
| Institution | Previous Shares Held | Current Shares Held | Change (%) |
|---|---|---|---|
| BlackRock, Inc. | 2,380,000 | 2,500,000 | +5% |
| The Vanguard Group, Inc. | 2,200,000 | 2,200,000 | 0% |
| State Street Corporation | 1,860,000 | 1,800,000 | -3% |
| Dimensional Fund Advisors LP | 1,450,000 | 1,500,000 | +3.4% |
| Invesco Ltd. | 1,200,000 | 1,200,000 | 0% |
Key Investors and Their Influence on FAT Brands Inc. (FAT)
Key Investors and Their Impact on FAT Brands Inc. (FAT)
FAT Brands Inc. has attracted attention from various notable investors, significantly impacting its strategic decisions and stock performance. Below are key investors associated with the company and their influence on its operations.
Notable Investors
- FB Resid Holdings I, LLC - A special purpose subsidiary that issued fixed-rate secured notes totaling $150 million in 2023.
- Institutional Investors - Various institutional funds have increased their stakes, contributing to the overall market confidence in the company's growth potential.
Investor Influence
Investors play a crucial role in shaping corporate governance and strategic direction. The presence of large institutional investors often leads to:
- Increased Scrutiny - Larger investors demand transparency and accountability, influencing board decisions.
- Activism - Some investors may engage in activist strategies to push for changes in management or operational strategies.
Recent Moves
Recent notable moves by investors include:
- Acquisition of Smokey Bones - The acquisition in September 2023 was supported by investor confidence, reflected in a 39% increase in total revenue year-over-year.
- Debt Issuances - The company raised $69.9 million from secured debt sales to fund expansion initiatives during the 39 weeks ended September 29, 2024.
Financial Overview
The following table summarizes key financial metrics relevant to investor activities and their implications for the company's valuation:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $143.4 million |
| Net Loss (Q3 2024) | $44.8 million |
| Debt Obligations | $1.2 billion |
| Cash and Cash Equivalents (as of Sept 29, 2024) | $66.7 million |
| Dividends Declared (2024) | $0.14 per share |
These metrics illustrate the financial landscape in which investors operate, highlighting both the challenges and opportunities facing the company as it navigates its growth strategy. The influence of key investors continues to shape the trajectory of FAT Brands Inc.
Market Impact and Investor Sentiment of FAT Brands Inc. (FAT)
Market Impact and Investor Sentiment
The current sentiment among major shareholders towards the company is neutral. Investors are closely monitoring the company's operational performance and recent acquisitions, particularly the integration of Smokey Bones.
Recent Market Reactions
Following the acquisition of Smokey Bones in September 2023, the stock has seen fluctuations. The stock price was approximately $8.50 prior to the acquisition announcement and has since experienced a peak of $10.00 and a drop to around $7.00 as of late October 2024. This volatility reflects investor reactions to the company's expanded footprint and associated risks.
Analyst Perspectives
Analysts have mixed views regarding the impact of large investors on the company’s future. Some analysts suggest that the acquisition will enhance revenue streams, with projected revenue growth of 39.0% for the first three quarters of 2024 compared to the same period in 2023, totaling $447.4 million. Others caution about the rising operational costs, which increased by 55.3% to $460.3 million in the same period.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $143.4 million | $109.4 million | 31.1% |
| Net Loss | $(44.8 million) | $(24.7 million) | 81.6% |
| General and Administrative Expense | $34.5 million | $24.5 million | 41.0% |
| Interest Expense | $35.5 million | $29.7 million | 19.5% |
Investor sentiment remains influenced by these financial metrics, indicating a cautious but optimistic outlook among shareholders and analysts alike. As the company continues to integrate its acquisitions and manage costs, further developments will be closely watched.
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Article updated on 8 Nov 2024
Resources:
- FAT Brands Inc. (FAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FAT Brands Inc. (FAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FAT Brands Inc. (FAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.