FAT Brands Inc. Announces Income Tax Treatment of Dividends and Adjustments

On January 7, 2025, FAT Brands Inc. (NASDAQ: FAT) submitted a Form 8-K filing with the Securities and Exchange Commission (SEC) detailing the income tax treatment of dividends paid during the fiscal year ending December 29, 2024. The company declared and distributed quarterly cash dividends on its Class A Common Stock, Class B Common Stock, and 8.25% Series B Cumulative Preferred Stock throughout the year.

For the year 2024, FAT Brands Inc. outlined the income tax treatment for each of the cash dividends paid to holders of its Class A Common Stock and Class B Common Stock. Dividend per share, ordinary income, capital gain income, and return of capital were summarized for each dividend payment on record dates and payment dates.

Additionally, the company also disclosed adjustments made to the exercise price of its outstanding Warrants to purchase Class A Common Stock due to the cash dividends paid on Class A Common Stock. The adjusted exercise price per share of the Warrants and the amount of each adjustment on various dates were provided in the filing.

FAT Brands Inc. advised holders of Class A Common Stock, Class B Common Stock, Series B Preferred Stock, and Warrants to consult with their tax advisors regarding the federal, state, local, and foreign income tax implications of the dividends and adjustments made.

In a separate exhibit, Sterling Infrastructure, Inc. (NasdaqGS: STRL), a company associated in an operating agreement with FAT Brands Inc., announced an amendment to the operating agreement with Road and Highway Builders, LLC (“RHB”). The amendment alters the reporting of RHB results under Generally Accepted Accounting Principles (“GAAP”) without affecting its historical or future contribution to Sterling’s consolidated net income. CEO Joe Cutillo expressed confidence in the continued success of this venture.

Investors were cautioned to consider the risks and uncertainties associated with forward-looking statements within the release made by Sterling Infrastructure Inc. These statements are subject to regulatory requirements and necessitate discernment in light of potential risks.

For further information, Noelle Dilts, VP of Investor Relations and Corporate Strategy at Sterling Infrastructure, may be contacted at 281-214-0795 or via email at [email protected].

This announcement highlights FAT Brands Inc.’s commitment to providing transparency regarding financial operations and tax implications for shareholders and interested parties.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FAT Brands’s 8K filing here.

About FAT Brands

FAT Brands Inc, a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Ponderosa Steakhouse/Bonanza Steakhouse, Native Grill & Wings, Smokey Bones, and Twin Peaks.