FAT Brands
Market Cap
US$94.6m
Last Updated
2021/01/20 00:07 UTC
Data Sources
Company Financials +
Executive Summary
FAT Brands Inc., a multi-brand franchising company, acquires, develops, and markets fast casual and casual dining restaurant concepts. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Limited growth with imperfect balance sheet.
Share Price & News
How has FAT Brands's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FAT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: FAT's weekly volatility has decreased from 19% to 11% over the past year.
Market Performance
7 Day Return
3.7%
FAT
1.4%
US Hospitality
0.3%
US Market
1 Year Return
69.2%
FAT
-8.3%
US Hospitality
21.1%
US Market
Return vs Industry: FAT exceeded the US Hospitality industry which returned -12.2% over the past year.
Return vs Market: FAT exceeded the US Market which returned 19.5% over the past year.
Shareholder returns
| FAT | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.7% | 1.4% | 0.3% |
| 30 Day | 4.8% | 3.1% | 3.3% |
| 90 Day | 40.7% | 23.6% | 14.2% |
| 1 Year | 69.2%69.2% | -7.2%-8.3% | 23.8%21.1% |
| 3 Year | -0.5%-5.3% | -4.2%-10.0% | 45.0%35.4% |
| 5 Year | n/a | 58.5%42.7% | 127.7%102.3% |
Long-Term 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
1 month ago | Simply Wall St
If You Had Bought FAT Brands (NASDAQ:FAT) Stock A Year Ago, You Could Pocket A 54% Gain Today2 months ago | Simply Wall St
A Look At FAT Brands' (NASDAQ:FAT) CEO Remuneration4 months ago | Simply Wall St
Did FAT Brands Inc. (NASDAQ:FAT) Insiders Buy Up More Shares?Valuation
Is FAT Brands undervalued compared to its fair value and its price relative to the market?
In this section, we usually try to help investors determine whether FAT Brands is trading at an attractive price based on the cash flow it is expected to produce in the future. But as FAT Brands has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.
This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.
Next Steps
- Take a look at our analysis of FAT's management and see if the CEO's compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Explore potentially undervalued companies in the Consumer Services industry.
Future Growth
How is FAT Brands forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
141.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FAT is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: FAT is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: FAT is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: FAT's revenue (62.5% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: FAT's revenue (62.5% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if FAT's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has FAT Brands performed over the past 5 years?
-87.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FAT is currently unprofitable.
Growing Profit Margin: FAT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FAT is unprofitable, and losses have increased over the past 5 years at a rate of 87.4% per year.
Accelerating Growth: Unable to compare FAT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FAT is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-56.1%).
Return on Equity
High ROE: FAT has a negative Return on Equity (-63.12%), as it is currently unprofitable.
Next Steps
Financial Health
How is FAT Brands's financial position?
Financial Position Analysis
Short Term Liabilities: FAT's short term assets ($31.2M) do not cover its short term liabilities ($31.9M).
Long Term Liabilities: FAT's short term assets ($31.2M) do not cover its long term liabilities ($104.8M).
Debt to Equity History and Analysis
Debt Level: FAT's debt to equity ratio (681.8%) is considered high.
Reducing Debt: Insufficient data to determine if FAT's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
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.
Stable Cash Runway: FAT has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: FAT has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of 76.2% each year.
Next Steps
Dividend
What is FAT Brands's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FAT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FAT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FAT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FAT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: FAT is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FAT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Andy Wiederhorn (54 yo)
3.25yrs
Tenure
US$413,863
Compensation
Mr. Andrew A. Wiederhorn, also known as Andy, has been Chief Executive Officer, President and Director at FAT Brands Inc. since October 2017. Mr. Wiederhorn had been the Chairman of the Board and Chief Exe...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD413.86K) is about average for companies of similar size in the US market ($USD534.46K).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$413.86k | 71.18% $ 67.4m | |
| CFO & Corporate Secretary | 2.42yrs | US$290.60k | no data | |
| Senior Vice President of Finance | 2.42yrs | US$313.86k | no data | |
| Executive VP & Chief Concept Officer | 2.92yrs | US$413.86k | no data | |
| Chief Marketing Officer | 3.83yrs | no data | 0.00069% $ 652.9 | |
| President & COO of Casual Dining Division | 3.25yrs | US$219.01k | no data | |
| Chief Development Officer | 3.83yrs | no data | 0.026% $ 24.6k | |
| President & COO of Fatburger | 2.92yrs | no data | no data |
3.1yrs
Average Tenure
51.5yo
Average Age
Experienced Management: FAT's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.25yrs | US$413.86k | 71.18% $ 67.4m | |
| Independent Chairman of the Board | 3.25yrs | US$74.83k | 0.28% $ 266.1k | |
| Independent Director | 3.25yrs | US$74.83k | 0.74% $ 698.5k | |
| Independent Director | 3.25yrs | US$74.83k | 0.65% $ 615.9k |
3.3yrs
Average Tenure
65.5yo
Average Age
Experienced Board: FAT's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$94.624m
- Shares outstanding: 14.69m
- Website: https://www.fatbrands.com
Number of Employees
Location
- FAT Brands Inc.
- 9720 Wilshire Boulevard
- Suite 500
- Beverly Hills
- California
- 90212
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FAT | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Oct 2017 |
| FATB.P | NasdaqCM (Nasdaq Capital Market) | 8.25% CUM PFD B | US | USD | Jul 2020 |
Biography
FAT Brands Inc., a multi-brand franchising company, acquires, develops, and markets fast casual and casual dining restaurant concepts. As of December 14, 2020, it owned nine restaurant brands, including Fa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 00:07 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/09/27 |
| Annual Earnings | 2019/12/29 |
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.