Following a conspicuous downturn during regular trading hours, shares of FAT Brands Inc. (NASDAQ: FAT) exhibited signs of recovery during after-hours trading last Friday. The extended session witnessed a commendable 10.15% upsurge in FAT stock, reaching $5.97, countering the prior session's 28.50% loss. This oscillation in FAT Brands' stock value coincided with the emergence of a legal matter.
Table of Contents
Toggle- Litigation Allegations And Corporate Response
- Extending Views
Litigation Allegations And Corporate Response
Brian Hennigan, representing FAT Brands as Counsel at Hueston Hennigan LLP, released a statement addressing the company's notification of indictment on two counts of violating SOX 402. These charges pertain to the facilitation of approximately $2.65 million in loans to Andy Wiederhorn.
These claims were strongly denied by FAT Brands, who described them as unprecedented, unfair, unjustified, and baseless. The corporation emphasized that the alleged behavior occurred more than three years ago and emphasized its complete cooperation with the inquiry. Asserting its commitment to defend against the charges, FAT Brands expressed a desire for a fair resolution.
Notwithstanding these legal issues, FAT Brands emphasized how much it has grown since going public, with 18 brands, $2.5 billion in sales globally, and 2,300 locations—a success that benefits both investors and franchisees.
Extending Views
In a well-thought-out move, FAT Brands has disclosed ambitions to grow its Hurricane Grill & Wings brand into the renowned Six Flags establishments through Hurricane Grill & Wings. Hurricane Grill & Wings, which is well-known for its relaxed atmosphere and award-winning wings, is set to open this summer at Six Flags Great Escape Lodge in Queensbury, New York.
This move demonstrates FAT Brands' successful collaboration with Six Flags and its dedication to growing into unconventional spaces. Hurricane Grill & Wings is a notable growth, especially in the upstate area, to the New York state market.
Notably, this endeavor becomes FAT Brands' third brand within Six Flags amusement parks, following in the footsteps of Johnny Rockets and Fatburger. Ever since it began collaborating with Six Flags after Johnny Rockets was acquired in 2020, the relationship has benefited both parties.