Why did FATBB's operating profit plummet in Q4 2024?

The operating income of Fat Brands B (FATBB) plummeted by $73.98 million in Q4 2024 compared to the previous quarter. This significant decline can be attributed to several key factors:

1. **Acquisition-Related Costs**: Fat Brands has been expanding its portfolio through acquisitions, such as adding Smokey Bones to its portfolio. However, these acquisitions come with integration challenges and increased operational costs. The company reported a net loss of $44.8 million for Q3 2024, which was attributed to increased operational costs from acquisitions like Smokey Bones.
2. **Dividend Payments**: Fat Brands declared a quarterly dividend of $0.14 per share in October 2024, which represents an annualized dividend of $0.56 and a yield of 11.76%. Dividend payments can significantly impact a company's cash reserves and may affect its operating income, especially if the dividend amount is substantial.

In conclusion, the operating income of FATBB plummeted in Q4 2024 due to a combination of acquisition-related costs and dividend payments. These factors, either directly or indirectly, affected the company's financial performance during the period.

|code|Ticker|Name|Date|Operating Income YoY|Operating Income|market_code|
|---|---|---|---|---|---|---|
|FATBB|FATBB.O|Fat Brands B|2023 Q4|37.35556204179043|-3.6486E7|186|
|FATBB|FATBB.O|Fat Brands B|2024 Q1|-19.08491898070329|-3.5423E7|186|
|FATBB|FATBB.O|Fat Brands B|2024 Q2|-527.0242569183464|-3.6706E7|186|
|FATBB|FATBB.O|Fat Brands B|2024 Q3|-91.91001514168289|-4.436E7|186|