NasdaqCM:FAT

Stock Analysis Report

Executive Summary

FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Risks

  • FAT Brands has significant price volatility in the past 3 months.
  • FAT Brands is not covered by any analysts.

Share Price & News

How has FAT Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

13.4%

FAT

-2.6%

US Hospitality

-0.6%

US Market


1 Year Return

-37.8%

FAT

-3.6%

US Hospitality

0.6%

US Market

FAT underperformed the Hospitality industry which returned -2.6% over the past year.

FAT underperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

FATIndustryMarket
7 Day13.4%-2.6%-0.6%
30 Day36.1%1.9%2.2%
90 Day21.4%0.5%1.1%
1 Year-36.7%-37.8%-1.3%-3.6%2.9%0.6%
3 Yearn/a42.7%33.2%44.6%35.2%
5 Yearn/a39.9%24.6%61.9%44.2%

Price Volatility Vs. Market

How volatile is FAT Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FAT Brands undervalued based on future cash flows and its price relative to the stock market?

12.71x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

FAT Brands's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

FAT Brands's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

FAT Brands is loss making, we can't compare its value to the US Hospitality industry average.

FAT Brands is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for FAT Brands, we can't assess if its growth is good value.


Price Based on Value of Assets

FAT Brands is overvalued based on assets compared to the US Hospitality industry average.


Next Steps

Future Growth

How is FAT Brands expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.7%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as FAT Brands has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has FAT Brands performed over the past 5 years?

-571.8%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

FAT Brands does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.

Unable to compare FAT Brands's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare FAT Brands's 1-year growth to the US Hospitality industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if FAT Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

FAT Brands used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if FAT Brands improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is FAT Brands's financial position?


Financial Position Analysis

FAT Brands's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

FAT Brands's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

FAT Brands's level of debt (897.8%) compared to net worth is high (greater than 40%).

Unable to establish if FAT Brands's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.2x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making FAT Brands has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making FAT Brands has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.3% per year.


Next Steps

Dividend

What is FAT Brands's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate FAT Brands's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate FAT Brands's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as FAT Brands has not reported any payouts.

Unable to verify if FAT Brands's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as FAT Brands has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of FAT Brands's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Andrew Wiederhorn (53yo)

1.9yrs

Tenure

0

Mr. Andrew A. Wiederhorn, also known as Andy, has been Chief Executive Officer, President & Director at FAT Brands Inc. since October 2017. Mr. Wiederhorn has been the Chairman of the Board and Chief Execu ...


Management Age and Tenure

1.6yrs

Average Tenure

50.5yo

Average Age

The average tenure for the FAT Brands management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

60yo

Average Age

The average tenure for the FAT Brands board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by FAT Brands individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$19,11120 Aug 19
John Junger
EntityIndividual
Shares5,000
Max PriceUS$3.92
BuyUS$45,32015 Jun 19
James Neuhauser
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,000
Max PriceUS$4.18
BuyUS$3,97015 Jun 19
Andrew Wiederhorn
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$3.97
BuyUS$29,73124 May 19
John Junger
EntityIndividual
Shares6,270
Max PriceUS$4.76
BuyUS$1,22401 Mar 19
Jeff Lotman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares217
Max PriceUS$5.64
BuyUS$1,68101 Mar 19
James Neuhauser
EntityIndividual
Role
Member of the Board of Directors
Director
Shares304.34
Max PriceUS$5.52
BuyUS$15,00017 Dec 18
Marc Holtzman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,842.21
Max PriceUS$5.28
BuyUS$15,00013 Dec 18
John Junger
EntityIndividual
Shares2,842.21
Max PriceUS$5.28
BuyUS$15,00013 Dec 18
Jeff Lotman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,842.21
Max PriceUS$5.28
BuyUS$15,00013 Dec 18
Edward Rensi
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,842.21
Max PriceUS$5.28
BuyUS$15,00013 Dec 18
Silvia Kessel
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,842.21
Max PriceUS$5.28
BuyUS$15,00013 Dec 18
James Neuhauser
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,842.21
Max PriceUS$5.28
BuyUS$71,13229 Nov 18
John Junger
EntityIndividual
Shares12,926.3
Max PriceUS$5.50
BuyUS$31,23521 Nov 18
James Neuhauser
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,106.38
Max PriceUS$6.12
BuyUS$6,25021 Nov 18
John Junger
EntityIndividual
Shares1,021.28
Max PriceUS$6.12
BuyUS$62720 Nov 18
John Junger
EntityIndividual
Shares100.09
Max PriceUS$6.27
BuyUS$3,036,09413 Nov 18
Fog Cutter Capital Group Inc.
EntityCompany
Shares498,630.08
Max PriceUS$6.18

Ownership Breakdown


Management Team

  • Andrew Wiederhorn (53yo)

    President

    • Tenure: 1.9yrs
  • Gregg Nettleton (63yo)

    President & COO of Casual Dining Division

    • Tenure: 0yrs
    • Compensation: US$219.01k
  • Don Berchtold (73yo)

    Executive VP & Chief Concept Officer

    • Tenure: 1.6yrs
    • Compensation: US$419.96k
  • Rebecca Hershinger (45yo)

    CFO & Corporate Secretary

    • Tenure: 1.1yrs
    • Compensation: US$295.57k
  • Toni Bianco (48yo)

    President & COO of Fatburger

    • Tenure: 1.6yrs
  • Ron Roe (41yo)

    Senior Vice President of Finance

    • Tenure: 1.1yrs
    • Compensation: US$319.96k
  • Thayer Wiederhorn

    Chief Marketing Officer

    • Tenure: 2.5yrs
  • Taylor Wiederhorn

    Chief Development Officer

    • Tenure: 2.5yrs

Board Members

  • Silvia Kessel (68yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$79.96k
  • Andrew Wiederhorn (53yo)

    President

    • Tenure: 1.9yrs
  • Edward Rensi (74yo)

    Chairman

    • Tenure: 1.9yrs
    • Compensation: US$79.96k
  • Jim Neuhauser (60yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$79.96k
  • Marc Holtzman (59yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$79.96k
  • Squire Junger (68yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$79.96k
  • Jeff Lotman (57yo)

    Director

    • Tenure: 1.9yrs
    • Compensation: US$79.96k

Company Information

FAT Brands Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FAT Brands Inc.
  • Ticker: FAT
  • Exchange: NasdaqCM
  • Founded: 2017
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$61.736m
  • Shares outstanding: 11.83m
  • Website: https://www.fatbrands.com

Number of Employees


Location

  • FAT Brands Inc.
  • 9720 Wilshire Boulevard
  • Suite 500
  • Beverly Hills
  • California
  • 90212
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FATNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 2017

Biography

FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts. As of June 27, 2019, it owned 8 restaurant brands, including Fatburger ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 00:20
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.