Burger merger: Fatburger owner is buying Johnny Rockets for $25 million

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FAT Brands, the owner of Fatburger, is buying the 1950s diner-themed chain Johnny Rockets for $25 million.

Like much of the restaurant industry, FAT Brands has been hit hard by the Covid-19 pandemic: The company said last week that sales for the second quarter plunged nearly 50%, and its stock was down nearly 25% this year before the deal was announced. But FAT Brands' stock more than doubled in early trading Thursday on the news of the Johnny Rockets purchase. FAT Brands also owns Elevation Burger, Hurricane Grill & Wings and the Ponderosa and Bonanza Steakhouses chains.

However, Americans' tastes have changed. More consumers, especially younger diners, are shunning meat. Johnny Rockets' menu does include a black bean burger, but there are no trendy plant-based offerings such as those popularized by Beyond Meat and Impossible Foods. Read MoreFAT Brands hinted that it might shake things up at Johnny Rockets. Andy Wiederhorn, CEO of FAT Brands, said in a statement Thursday that FAT Brands is"eager to take the brand to new heights.

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