FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts.
Slightly overvalued 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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: FAT underperformed the US Hospitality industry which returned -50.5% over the past year.
Return vs Market: FAT underperformed the US Market which returned -13.3% over the past year.
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
2 days ago | Simply Wall StSome FAT Brands (NASDAQ:FAT) Shareholders Have Copped A Big 61% Share Price Drop
1 month ago | Simply Wall StRead This Before Selling FAT Brands Inc. (NASDAQ:FAT) Shares
2 months ago | Simply Wall StA Look At The Fair Value Of FAT Brands Inc. (NASDAQ:FAT)
Is FAT Brands undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FAT ($2.15) is trading below our estimate of fair value ($3.14)
Significantly Below Fair Value: FAT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FAT is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.
PE vs Market: FAT is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FAT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FAT is overvalued based on its PB Ratio (4.1x) compared to the US Hospitality industry average (1.2x).
How is FAT Brands forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
- 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 growth companies in the Consumer Services industry.
How has FAT Brands performed over the past 5 years?
Last years 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: Insufficient data to determine if FAT's year-on-year earnings growth rate was positive over the past 5 years.
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 (1.6%).
Return on Equity
High ROE: FAT has a negative Return on Equity (-41.17%), as it is currently unprofitable.
How is FAT Brands's financial position?
Financial Position Analysis
Short Term Liabilities: FAT's short term assets ($8.9M) do not cover its short term liabilities ($42.7M).
Long Term Liabilities: FAT's short term assets ($8.9M) do not cover its long term liabilities ($30.2M).
Debt to Equity History and Analysis
Debt Level: FAT's debt to equity ratio (659.2%) is considered high.
Reducing Debt: Insufficient data to determine if FAT's debt to equity ratio has reduced over the past 5 years.
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: Whilst unprofitable FAT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: FAT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.3% per year.
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 payouts.
High Dividend: Unable to evaluate FAT's dividend yield against the top 25% of dividend payers, as the company has not reported any 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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andrew Wiederhorn (53yo)
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 has been the Chairman of the Board and Chief Exe ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD419.96K) is below average for companies of similar size in the US market ($USD622.20K).
Compensation vs Earnings: Andrew's compensation has increased whilst the company is unprofitable.
|CFO & Corporate Secretary||1.67yrs||US$295.57k||no data|
|Senior Vice President of Finance||1.67yrs||US$319.96k||no data|
|Executive VP & Chief Concept Officer||2.17yrs||US$419.96k||no data|
|Chief Marketing Officer||3.08yrs||no data||no data|
|Chief Development Officer||3.08yrs||no data||no data|
|President & COO of Casual Dining Division||2.5yrs||US$219.01k||no data|
|President & COO of Fatburger||2.17yrs||no data||no data|
Experienced Management: FAT's management team is considered experienced (2.3 years average tenure).
|Independent Director||2.5yrs||US$79.96k||0.23% $58.4k|
|Independent Chairman of the Board||2.5yrs||US$79.96k||0.24% $62.3k|
|Independent Director||2.5yrs||US$79.96k||0.55% $140.9k|
|Independent Director||2.5yrs||US$79.96k||0.26% $66.7k|
|Independent Director||2.5yrs||US$79.96k||0.41% $104.8k|
Experienced Board: FAT's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.9%.
FAT Brands Inc.'s company bio, employee growth, exchange listings and data sources
- Name: FAT Brands Inc.
- Ticker: FAT
- Exchange: NasdaqCM
- Founded: 2017
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$25.464m
- Shares outstanding: 11.84m
- Website: https://www.fatbrands.com
Number of Employees
- FAT Brands Inc.
- 9720 Wilshire Boulevard
- Suite 500
- Beverly Hills
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|FAT||NasdaqCM (Nasdaq Capital Market)||Yes||Common Stock||US||USD||Oct 2017|
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, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean, Ponderosa Steakhouse, and Bonanza Steakhouse, as well as franchised approximately 400 units worldwide. The company was founded in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Capital Group Inc.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/07 05:42|
|End of Day Share Price||2020/04/06 00:00|
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.