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Scoop: Fat Brands may complete Twin Peaks IPO by end of fiscal Q1

Illustration of a briefcase made out of a restaurant check holder.

Illustration: Allie Carl/Axios

Fat Brands could complete an IPO of sports bar chain Twin Peaks by the end of its fiscal Q1 on April 30, a source close to the company's thinking tells Axios.

Why it matters: The IPO market outlook in 2024 looks strong, with an uptick in sizable new filings indicating an end to the drought.

Catch up fast: The Los Angeles-based parent of Fatburger has been planning a public offering of Twin Peaks since last summer, but the window never fully opened, the source says.

Details: Sports bar chain Twin Peaks has not yet filed, the source cautions.

  • But the source indicates it is imminent, noting it takes about three months between filing and pricing.
  • Barbecue chain Smokey Bones, which Fat Brands acquired from Sun Capital last September, would likely be included in the Twin Peaks offering, the source says.
  • Fat Brands will likely float a 20% stake while retaining 80%, the source says.

Of note: The source says there's also an option to sell the business.

  • Either way, proceeds would go toward debt reduction.

Meanwhile: Fat Brands has also weighed selling its cookie dough factory in Atlanta, the source says.

  • The facility, however, is only at 40% capacity.
  • The company would likely need to acquire a couple of cookie brands to increase the capacity to 60% or 70% and then sell it, the source says.
  • A modest amount of capital expenditure could even double the factory's capacity.

Flashback: Fat Brands traces its history back to 2003 and now encompasses 18 brands, including Johnny Rockets and Great American Cookie.

  • The company and its chair, CEO and founder, Andy Wiederhorn, came under investigation by the SEC and U.S. Attorney's Office in California over accusations of improper loans.
  • Wiederhorn stepped down as CEO, though he remains chair.
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