Fatburger owner who buys Johnny Rockets for $ 25 million

08/14/2020 USA


Like many in the restaurant industry, FAT Brands has been hit hard by the Covid-19 pandemic: The company said last week that second-quarter sales fell nearly 50%, and its inventory was down nearly 25% this year before the deal was announced.
But FAT Brands’ share more than doubled in early trading Thursday on the news of the Johnny Rockets acquisition. FAT Brands (FET) also owns Elevation Burger, Hurricane Grill & Wings and the Ponderosa and Bonanza chains.
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Johnny Rockets, which had been owned by private equity firm Sun Capital Partners, is known for its retro feel as decadent burgers and milkshakes. The company opened its first restaurant on the famous Melrose Avenue in LA in 1986.

However, the taste of Americans has changed. More consumers, especially younger diners, are shaking meat. Johnny Rockets’ menu may include a black beanburger, but there are no trendy plant-based offerings like the ones popularized by Beyond Meat (BYND) and impossible food.

FAT Brands thought it might shake things up at Johnny Rockets. Andy Wiederhorn, CEO of FAT Brands, said in a statement Thursday that FAT Brands is “eager to take the brand to new heights.”

Once the deal closes, which should be in September, FAT Brands will have more than 700 restaurant locations worldwide and a total annual sales of more than $ 700 million.

And in case you are wondering, the FAT in FAT Brands is not meant to describe what happens when you eat the burger of the company. It’s an acronym for Fresh. Authentic. Delicious.

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