Andy Wiederhorn, CEO of FAT Brands, says the fast-casual restaurant franchise operator is on the lookout for another acquisition following the acquisition of this burger chain Johnny Rockets this week.
“Today we are actively looking for things that we can take over. I would assume we make one or two acquisitions in the next few quarters, “Wiederhorn told Yahoo Finance’s” The First Trade “on Friday.
The COVID-19 pandemic has hit the restaurant industry particularly hard, resulting in falling valuations, but also prices that enable buyers to make a deal.
“The markets have been renovated. Everything is a bit dangling in the restaurant space at the moment. That’s what it is, ”said Wiederhorn.
On Thursday, FAT Brands (FAT), the owner of Fatburger and Hurricane Grill & Wings, acquired the 1950s-style dinner burger chain Johnny Rockets from private equity firm Sun Capital Partners for $ 25 million. Shares of FAT brands jumped almost 100% on the news about the deal.
“It simply came to our notice then. COVID-19 is a short-term crisis. It will not go on forever, ”Wiederhorn added.
He claimed the restaurant industry would survive, but it would ‘have to take some clogs’.
“It’s painful for everyone, and you know, the government really needs to do another round of PPP and the tax cuts and something for the landowners, but it will survive. That, I think now is the time to do those deals if you can. ”
Shares of FAT markets traded 14.2% lower, as off $ 1, at $ 6.01 after closing at $ 7.01 on Thursday.
Twitter.“data-reactid =” 29 “>Julia La Roche is a correspondent for Yahoo Finance. Follow them up Twitter.
