FAT Brands to acquire Johnny Rockets for $25 MN

Owner of fast casual chain Fatburger is buying diner-styled franchise restaurant Johnny Rockets for $25 million.

Covid-19 pandemic has hit hard the entire restaurant industry and FAT Brands has also suffered the heat.

According to the reports, the company reported a 50% jump in the sale for second quarter, and its stock was down nearly 25% this year before the deal was announced.

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FAT Brands that also owns Elevation Burger, Hurricane Grill & Wings and the Ponderosa and Bonanza Steakhouses chains stock doubled in early trading Thursday on the news of the Johnny Rockets purchase.

Johnny Rockets is globally known for its decadent burgers and milkshakes is owned by private equity firm Sun Capital Partners and is running over 310 locations across globe.

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"We are eager to take the brand to new heights,” shared Andy Wiederhorn, CEO of FAT Brands in a statement.

Once the deal closes, which should be in September, FAT Brands will have more than 700 restaurant locations worldwide and total annual sales of more than $700 million, reported CNN.