The skinny on Fat Brands Inc. (FAT, Financial) is this: the parent company of Fatburger, Johnny Rockets and 13 other restaurant concepts is going to Libya.
A recently signed deal will see the company franchise five co-branded Johnny Rockets and Hurricane Grill & Wings locations and five co-branded Fatburger and Buffalo’s Express restaurants, which are slated to open over the next three years.
Fat (for Fresh, Authentic, Tasty) Brands is a leading global franchising company that strategically acquires, markets and develops fast-casual, quick-service, casual and polished casual dining restaurant concepts around the world. Its other concepts include Round Table Pizza, Marble Slab Creamery, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses. In all, it franchises over 2,100 units worldwide.
Fatburger is a fast-casual restaurant serving big, juicy, tasty burgers, crafted specifically to each customer’s liking. Johnny Rockets offers high-quality, innovative menu items, including certified Angus beef cooked-to-order hamburgers, veggie burgers and chicken sandwiches. Hurricane Grill & Wings is known for its jumbo, fresh wings, more than 35 signature sauces and rubs and tropical, laid-back vibe. Buffalo’s Express is a fast-casual chain known for its chicken wings and proprietary wing sauces.
Franchisee Al Majmoua Al Moutakamila is spearheading the 10-store deal, which will also mark the first co-branded Johnny Rockets and Hurricane Grill & Wings location to date in the region. “On the heels of recently announced expansion plans in United Arab Emirates, Kingdom of Saudi Arabia, Bahrain, Qatar, and Kuwait, the Libya development deal further reinforces Fat Brands’ commitment to growing in the Middle East,” executives said in a release.
“The Middle East is an important growth area for Fay Brands,” President and CEO Andy Wiederhorn said as part of the announcement. “With a growing appreciation for quick-service restaurants in the region, we look forward to bringing our beloved burger and wing brands to Libya. Similarly, we are excited to unveil the first co-branded Johnny Rockets and Hurricane Grill & Wings location in the region. We saw tremendous success when we co-branded Fatburger and Buffalo’s Express and expect to see the same with this burger and wing pairing with locals.”
The company’s aggressive expansion strategy paid off in the third quarter, with strong results. Wiederhorn noted in a statement that during the quarter it successfully closed the acquisition of the Twin Peaks sports lodge for $300 million on Oct. 1, the operator’s third acquisition in the past year.
“We continue to execute on our acquisition strategy here in the fourth quarter,” he noted, “as on Nov. 2, 2021 the company announced it had agreed to acquire Fazoli’s, the largest premium QSR Italian chain in the U.S., from Sentinel Capital Partners for $130 million. We believe this is a fantastic addition to our portfolio as Fazoli’s further enhances our profitability, adding an estimated $14.5 to $15.0 million to our post-Covid normalized Ebitda in 2022.”
In addition, Wiederhorn said, “Our franchise sales team had a record quarter, closing nine deals that account for 166 locations, which will further enhance our organic growth strategy. We expect unit growth to continue increasing in the coming months with plans to open 26 additional stores by the end of the year for a total of 85 for 2021.”
