FAT Brands Announces Record and Distribution Dates for Special Stock Dividend in Connection with Twin Hospitality Spin-Off

FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) has announced the record and distribution dates for a special stock dividend in connection with the spin-off of Twin Hospitality Group Inc. (Twin Hospitality), the operating unit for its Twin Peaks and Smokey Bones restaurant brands. The distribution of shares of Class A Common Stock ("Twin Common Stock") of Twin Hospitality will be made on a pro rata basis to all holders of FAT Brands' Class A Common Stock and Class B Common Stock as of the close of trading on January 27, 2025 (the "record date"). The distribution will take the form of a special dividend of 0.1520207 share of Twin Common Stock distributed with respect to each one share of FAT Brands Class A Common Stock and Class B Common Stock outstanding as of the record date. The shares of Twin Common Stock are expected to be delivered after the close of trading on January 29, 2025 (the "distribution date"), subject to the satisfaction or waiver of certain conditions, and commence trading on the Nasdaq Global Market under the symbol "TWNP" on the next trading day.



The spin-off of Twin Hospitality is expected to have a positive impact on FAT Brands' shareholder value by increasing focus, potentially leading to higher valuation, creating opportunities for synergies, and allowing for strategic divestments. By becoming a standalone public company, Twin Hospitality will have more flexibility and independence to pursue its own growth strategies and make decisions that align with its specific business needs. This focused approach allows Twin Hospitality to tailor its strategies to the unique characteristics and market demands of its two primary brands, Twin Peaks and Smokey Bones.

The distribution of Twin Common Stock will likely impact the liquidity and trading dynamics of FAT Brands' shares in several ways. First, it will create two separate markets for trading FAT Brands' Class A Common Stock and Class B Common Stock: a 'egular way' market where shares trade with an entitlement to receive shares of Twin Common Stock, and an 'ex-distribution' market where shares trade without this entitlement (identified by the letter "v" at the end of the trading symbol). This dual market structure may lead to increased trading activity and potentially higher volatility in the short term as investors adjust their positions. Second, the distribution of Twin Common Stock will result in a decrease in the number of outstanding shares of FAT Brands, which could lead to an increase in the price per share. This is because the value of a company is often inversely proportional to the number of outstanding shares, assuming all other factors remain constant. As a result, the distribution could make FAT Brands' shares more attractive to investors, potentially leading to increased demand and higher liquidity.

In conclusion, the spin-off of Twin Hospitality from FAT Brands has several strategic implications that could drive growth and development for the new standalone company. By focusing on its core brands, accessing capital markets, attracting talent, and exploring strategic partnerships, Twin Hospitality can position itself for success in the competitive restaurant industry. The distribution of Twin Common Stock will also impact the liquidity and trading dynamics of FAT Brands' shares, potentially leading to increased trading activity, higher volatility, and an increase in the price per share. Investors are advised to consult with their financial and tax advisors regarding the specific implications of buying or selling shares of either company on or before the distribution date.