FAT Brands’ November purchase of Ponderosa and Bonanza also came at a low price. The company paid $10.5 million for the two chains, established in 1965 and 1963, respectively, and their more than 120 locations worldwide.
FAT Brands said it plans to use Hurricane to complement its Buffalo’s Café brand by leveraging its signature, tropical American atmosphere. This gives FAT Brands more than 75 combined chicken-wing-themed restaurants in the southeastern U.S.
“Hurricane Grill & Wings possesses an ambiance that appeals to a broad consumer-base, and we are thrilled to have identified this concept which shares our passion for providing guests with an all-American experience through high-quality, made-to-order meals,” said Andy Wiederhorn, president and CEO of FAT Brands, in a statement.
FAT Brands said it expects its annualized revenue to exceed $17 million and annualized adjusted cash earnings to exceed $11 million, or $1.10 per common share based on 10 million shares outstanding. The deal gives FAT Brands’ franchisees systemwide sales above $360 million.
“Based on our expected free cash flow in 2018, we expect to pay an annualized dividend of $0.48 per common share starting in 2018, subject to the declaration and approval by the board of directors, which represents an implied yield of approximately 5 percent based on the current share price,” Wiederhorn said.
The deal also includes Hurricane’s fast casual concept, Hurricane BTW. The limited-service format debuted as a prototype location in Fort Lauderdale, Florida, and tested well over its first 18 months, company leaders said in September.