Fatburger's parent files for IPO

fatburger food

The parent company of the Fatburger hamburger chain said it intends to seek a regulatory go-ahead for an initial public stock offering through the new Regulation A process for small and midsized companies.

The concern, FAT Brands Inc., also operates the 25-unit Buffalo’s Cafe casual-dining chain and the Buffalo’s Express fast-casual concept, which is co-branded with 72 Fatburger units. The company said its brands extend to more than 200 locations.

FAT Brands said it intends to raise $20 million through the new sort of filing, which has been dubbed a mini IPO. 

Bobby Flay’s fast-casual burger concept, Bobby’s Burger Palace, announced plans two weeks ago for a $15 million mini IPO.

Regulation A was included in the Obama administration’s JOBS Act, which aimed to promote job creation by relieving some regulatory burdens on small- to medium-sized businesses. The regulation streamlines the process for companies of that size to file for IPOs of $3 million to $50 million.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

The finances of younger consumers have taken a nosedive this year

The Bottom Line: Unemployment among younger Americans has soared, as have student loan delinquency rates, while average rent keeps going up. No wonder restaurant traffic is awful.

Financing

Restaurant franchisors should put the brakes on share buybacks

The Bottom Line: Publicly traded companies often spend their extra cash to buy back shares. But franchisors of struggling chains might be better off investing that cash in the restaurants.

Financing

Key takeaways from the recent round of restaurant company earnings

The Bottom Line: Full-service restaurant chains are winning, slightly, in a weak overall market. Brands are rethinking unit count, focusing on service and pushing a lot of value.

Trending

More from our partners