NasdaqCM:FAT

Stock Analysis Report

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Executive Summary

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


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

FATIndustryMarket
7 Day3.7%1.4%0.3%
30 Day4.8%3.1%3.3%
90 Day40.7%23.6%14.2%
1 Year69.2%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 Yearn/a58.5%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

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

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

NamePositionTenureCompensationOwnership
Andrew Wiederhorn
President3.25yrsUS$413.86k71.18%
$ 67.4m
Rebecca Hershinger
CFO & Corporate Secretary2.42yrsUS$290.60kno data
Ron Roe
Senior Vice President of Finance2.42yrsUS$313.86kno data
Donald Berchtold
Executive VP & Chief Concept Officer2.92yrsUS$413.86kno data
Thayer Wiederhorn
Chief Marketing Officer3.83yrsno data0.00069%
$ 652.9
Gregg Nettleton
President & COO of Casual Dining Division3.25yrsUS$219.01kno data
Taylor Wiederhorn
Chief Development Officer3.83yrsno data0.026%
$ 24.6k
Toni Bianco
President & COO of Fatburger2.92yrsno datano 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

NamePositionTenureCompensationOwnership
Andrew Wiederhorn
President3.25yrsUS$413.86k71.18%
$ 67.4m
Edward Rensi
Independent Chairman of the Board3.25yrsUS$74.83k0.28%
$ 266.1k
James Neuhauser
Independent Director3.25yrsUS$74.83k0.74%
$ 698.5k
John Junger
Independent Director3.25yrsUS$74.83k0.65%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FATNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 2017
FATB.PNasdaqCM (Nasdaq Capital Market)8.25% CUM PFD BUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 00:07
End of Day Share Price2021/01/19 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


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.