: Johnny Rockets, Hot Dog on a Stick parent Fat Brands plans to IPO Twin Peaks restaurant chain

Shares of Fat Brands Inc. FAT ran up 9.4% toward a 10-week high in afternoon trading Tuesday, after the restaurant franchising company, with brands including Johnny Rockets, Hot Dog on a Stick, Round Table Pizza and Fatburger, said it’s planning an initial public offering (IPO) of its Twin Peaks sports-lodge themed restaurant chain. Twin Peaks, which Fat Brands acquired in October 2021, is expected to end 2023 with approximately 115 lodges, up nearly 40% since it was acquired. The chain expects to double its restaurant count to more than 200 lodges over the next several years. The company said the timing and size of the IPO will be subject to market conditions. It plans to remain the majority owner of Twin Peaks after the IPO. “We believe that creating a separate publicly traded company will provide the best opportunity to further enhance the brand, capitalize on its expansion plans and build upon its position as a leader in the sports lodge dining category,” said Fat Brands co-Chief Executive Officer Ken Kuick. The IPO plans come at a time of increasing investor interest in IPOs, as the Renaissance IPO exchange-traded fund IPO has advanced 10.3% over the past three months while the S&P 500 SPX has gained 5.6%.

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