Fat Brands is going to have to loosen its belt after this acquisition.
The parent company of popular burger chain Fatburger saw its shares skyrocket more than 200 percent after it announced that it would be acquiring fellow burger slinger Johnny Rockets.
The $25 million deal will see it add 700 locations of the 1950s-themed restaurant — famous for its burgers and shakes — to its portfolio, and is expected to be completed in September.
Fat Brands’ CEO Andy Wiederhorn said the company expects to modernize Johnny Rocket’s menu, which already has a black bean burger, by adding plant-based options and vegan milkshakes.
The deal comes as fast-food restaurants see a surge in demand for comfort food delivered to their homes, as lockdowns spurred by the COVID-19 pandemic kept many diners away from restaurants.
Shares of Fat Brands were up 204.5 percent in early morning trading Thursday, at $10.75.
With Post wires.