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.

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

-4.1%

FAT

3.4%

US Hospitality

3.4%

US Market


1 Year Return

-29.5%

FAT

1.1%

US Hospitality

5.4%

US Market

Return vs Industry: FAT underperformed the US Hospitality industry which returned 1.1% over the past year.

Return vs Market: FAT underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

FATIndustryMarket
7 Day-4.1%3.4%3.4%
30 Day8.5%-5.3%-1.0%
90 Day25.7%-4.9%-0.4%
1 Year-29.5%-29.5%3.6%1.1%7.7%5.4%
3 Yearn/a42.8%33.5%46.2%36.8%
5 Yearn/a40.7%25.0%65.6%47.5%

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?

11.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: FAT ($4.9) is trading above our estimate of fair value ($2.17)

Significantly Undervalued: FAT is trading above our estimate of fair value.


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

Low 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 (11.9x) compared to the US Hospitality industry average (2.1x).


Next Steps

Future Growth

How is FAT Brands forecast 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

Earnings Trend: FAT is unprofitable, and there is insufficient past data to establish if their past 5-year earnings growth rate was positive.

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 (-13.9%).


Return on Equity

High ROE: FAT has a negative Return on Equity (-80.24%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FAT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FAT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is FAT Brands's financial position?


Financial Position Analysis

Short Term Liabilities: FAT's short term assets ($9.4M) do not cover its short term liabilities ($42.0M)

Long Term Liabilities: FAT's short term assets (9.4M) do not cover its long term liabilities (31.4M)


Debt to Equity History and Analysis

Debt Level: FAT's debt to equity ratio (897.8%) 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

Inventory Level: FAT has a low level of unsold assets or inventory.

Debt Coverage by Assets: FAT's 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.

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, even with free cash flow being positive and shrinking by -43.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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 .


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

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

1.8yrs

Average management tenure


CEO

Andrew Wiederhorn (53yo)

2yrs

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

1.8yrs

Average Tenure

50.5yo

Average Age

Experienced Management: FAT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

60yo

Average Age

Experienced Board: FAT's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FAT insiders have bought more shares than they have sold in the past 3 months.


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: 2yrs
  • Gregg Nettleton (63yo)

    President & COO of Casual Dining Division

    • Tenure: 2yrs
    • Compensation: US$219.01k
  • Don Berchtold (73yo)

    Executive VP & Chief Concept Officer

    • Tenure: 1.7yrs
    • Compensation: US$419.96k
  • Rebecca Hershinger (45yo)

    CFO & Corporate Secretary

    • Tenure: 1.2yrs
    • Compensation: US$295.57k
  • Toni Bianco (48yo)

    President & COO of Fatburger

    • Tenure: 1.7yrs
  • Ron Roe (41yo)

    Senior Vice President of Finance

    • Tenure: 1.2yrs
    • Compensation: US$319.96k
  • Thayer Wiederhorn

    Chief Marketing Officer

    • Tenure: 2.6yrs
  • Taylor Wiederhorn

    Chief Development Officer

    • Tenure: 2.6yrs

Board Members

  • Silvia Kessel (68yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$79.96k
  • Andrew Wiederhorn (53yo)

    President

    • Tenure: 2yrs
  • Edward Rensi (74yo)

    Chairman

    • Tenure: 2yrs
    • Compensation: US$79.96k
  • Jim Neuhauser (60yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$79.96k
  • Marc Holtzman (59yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$79.96k
  • Squire Junger (68yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$79.96k
  • Jeff Lotman (57yo)

    Director

    • Tenure: 2yrs
    • 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$57.963m
  • 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 Analysis2019/10/16 00:22
End of Day Share Price2019/10/15 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.