FAT Brands Sets the Stage for Twin Hospitality Spin-Off

FAT Brands Unveils Special Dividend and Twin Hospitality Launch

The world of franchising is buzzing with excitement as FAT (Fresh. Authentic. Tasty.) Brands Inc. takes a bold step forward. This leading global franchising company is officially set to distribute a special stock dividend that marks the beginning of a new chapter for Twin Hospitality Group Inc., the entity behind popular restaurant brands such as Twin Peaks and Smokey Bones.

Understanding the Special Dividend Distribution

In an announcement that has captured the attention of investors, FAT Brands (NASDAQ: FAT) revealed that its Board of Directors has greenlit the distribution of shares of Class A Common Stock, known as Twin Common Stock. This distribution amounts to approximately 5% of the total shares of Twin Hospitality, allowing existing shareholders of FAT Brands to benefit from this new spin-off.

All holders of FAT Brands' Class A and Class B Common Stock as of the record date will receive a special dividend. Specifically, for each share of FAT Brands, shareholders will gain 0.1520207 shares of Twin Common Stock. This distribution is expected to occur shortly after trading ends, introducing a new player in the stock market.

Key Dates and Details to Note

FAT Brands has outlined important dates that every investor should be aware of. The record date for this distribution is set, with shares of Twin Common Stock expected to be in the hands of investors following the close of trading on the distribution date. With this move, FAT Brands is not only increasing its stockholder value but also offering an opportunity to engage with a new public entity that operates in the vibrant restaurant space.

Importantly, FAT Brands has advised its warrant holders (NASDAQ: FATBW) to act swiftly. Those wishing to receive the Twin Common Stock dividend need to exercise their warrants before the record date. Failure to do so will mean not receiving the distribution, although a price adjustment will occur reflecting the dividend's value.

The Impact of the Twin Hospitality Spin-Off

Investors can expect significant market activity as the transition to a standalone public company unfolds. Twin Hospitality is gearing up to begin trading under the symbol “TWNP,” marking its official launch in the Nasdaq Global Market. This move not only aims to streamline operations within the restaurant sector but also presents an exciting opportunity for investors to diversify their portfolios.

In conjunction with this spin-off, FAT Brands will provide additional information to its stockholders through an informative statement detailing the spin-off. This statement outlines the distribution process and includes insights into the operational structure of Twin Hospitality.

Exploring FAT Brands' Comprehensive Portfolio

FAT Brands has built a formidable presence in the restaurant world, owning a diverse portfolio of 18 notable restaurant brands. From the savory offerings of Fatburger and Johnny Rockets to the indulgent treats found at Marble Slab Creamery, FAT Brands showcases the versatility and appeal that a multi-brand franchise can deliver to consumers and investors alike.

As the company expands its footprint, FAT Brands emphasizes innovation and quality within its franchises, highlighted by the strong performance of brands such as Twin Peaks, known for its vibrant dining experience, and Smokey Bones, a favorite for barbeque enthusiasts. The spin-off marks yet another step in FAT Brands' strategic growth, reinforcing its commitment to building valuable experiences for consumers while maximizing shareholder benefits.

Experts and financial advisors suggest that investors should carefully consider the implications of this special dividend on their portfolios. With two distinct ways to trade FAT Brands' stocks—with or without entitlement to Twin Common Stock—shareholders have pressing decisions to make to optimize their investment strategies.

New Opportunities in the Franchise Market

The franchise industry continues to thrive, and FAT Brands' proactive strategies are testaments to its forward-thinking approach. As Twin Hospitality starts its journey as an independent entity, the opportunity for growth within the fast-casual dining scene is ripe.

As Twin Peaks continues to expand, boasting a loyal following, the prospects for the new company are bright. This spin-off is not only a significant step for FAT Brands but a pivotal moment for investors looking to navigate the evolving restaurant landscape. With more than 2,300 units worldwide under its name, FAT Brands remains a powerhouse in the franchising sector, and the introduction of Twin Hospitality promises to further enhance its breadth of offerings.

Frequently Asked Questions

What is the special stock dividend announcement from FAT Brands?

FAT Brands will distribute shares of Twin Common Stock, representing around 5% of Twin Hospitality Group Inc. to its shareholders.

How will FAT Brands' shareholders benefit from the spin-off?

Shareholders of FAT Brands will receive Twin Common Stock through a special distribution, providing them an investment in a new public entity.

When are the crucial record and distribution dates for the stock?

The record date is January 27, 2025, with shares expected to be distributed after the market closes on January 29, 2025.

Are there any requirements for warrant holders to receive Twin Common Stock?

Yes, warrant holders must exercise their warrants for Class A Common Stock before the record date to receive the distribution.

What types of stocks will FAT Brands trade in after the distribution?

FAT Brands will trade its Class A and B Common Stock with two markets: regularly with entitlement to Twin Common Stock and ex-distribution without it.

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