Fat Brands (FAT) AI Stock Analysis

• Market Cap: $35.79M
• Dividend Yield: 154.08%
• Average Volume (3M): 58.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: 0.96%
• EPS Growth: -57.29%
• Country: US
• Employees: 2,089
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -2.88
• Shares Outstanding: 16,614,400
• 10 Day Avg. Volume: 90,173
• 30 Day Avg. Volume: 58,210
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.11
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -0.63
• Enterprise Value/Market Cap: 45.42
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 10.39
• Enterprise Value/Ebitda: -47.12
• 1Y Price Target: $12.50
• Price Target Upside: 537.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $2.00 ▲(2.04% Upside)

Fat Brands faces significant financial challenges, with persistent losses, high leverage, and negative cash flow. Technical analysis shows mixed signals, with short-term bullishness but long-term bearishness. Valuation metrics highlight financial distress, with a negative P/E ratio and unsustainable dividend yield. These factors collectively result in a low overall stock score.

Fat Brands Business Overview & Revenue Model

Company Description

FAT Brands Inc., a multi-brand franchising company, acquires, develops, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts worldwide. As of August 22, 2022, it owned seventeen restaurant brands, including Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo's Cafe and Buffalo's Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean, and Ponderosa Steakhouse/Bonanza Steakhouse, as well as franchises and owns approximately 2,300 locations. The company was incorporated in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. operates as a subsidiary of Fog Cutter Holdings, LLC.

How the Company Makes Money

Fat Brands generates revenue primarily through a combination of franchise fees, company-operated restaurant sales, and royalties from franchised locations. The company charges initial franchise fees and ongoing royalties based on a percentage of sales from franchisees, which provides a steady income stream. Additionally, Fat Brands earns revenue from selling products and ingredients to its franchisees. The company's growth strategy includes acquiring existing restaurant brands, which diversifies its portfolio and enhances revenue potential. Strategic partnerships with suppliers also contribute to cost savings and improved margins, further bolstering its financial performance.

Fat Brands Financial Statement Overview

Summary

Fat Brands is facing significant financial challenges across all verticals. The income statement shows persistent losses and declining revenue growth. The balance sheet is highly leveraged with negative equity, posing financial risks. Cash flow remains negative, indicating ongoing cash burn. The company needs to address these issues to improve its financial health and stability.

Income Statement

Fat Brands has faced significant challenges in its income statement, with negative net income and declining revenue growth. The TTM data shows a negative net profit margin of -32.39%, indicating substantial losses. The gross profit margin is 32.32%, which is relatively low for the industry. Revenue growth has been negative, reflecting a contraction in sales. Overall, the company is struggling with profitability and revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of -2.78, indicating significant leverage and financial risk. Stockholders' equity is negative, which is concerning for financial stability. The return on equity is extremely high at 98.57%, but this is due to the negative equity, which distorts the metric. Overall, the balance sheet shows high leverage and financial instability.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, indicating cash burn. The free cash flow to net income ratio is 1.29, suggesting that free cash flow is less negative than net income. However, the operating cash flow to net income ratio is negative, highlighting cash flow challenges. Despite a slight improvement in free cash flow growth, the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	577.50M	592.65M	480.46M	407.22M	118.88M	18.12M
Gross Profit	156.45M	150.42M	149.95M	185.60M	56.67M	12.90M
EBITDA	-34.51M	-12.82M	52.30M	14.49M	2.41M	-8.83M
Net Income	-212.33M	-189.85M	-90.11M	-126.19M	-31.58M	-14.86M
Balance Sheet
Total Assets	1.25B	1.29B	1.39B	1.21B	1.27B	121.14M
Cash, Cash Equivalents and Short-Term Investments	7.65M	23.38M	37.04M	28.67M	56.66M	3.94M
Total Debt	1.49B	1.47B	1.38B	1.12B	1.01B	97.92M
Total Liabilities	1.79B	1.74B	1.64B	1.37B	1.29B	163.03M
Stockholders Equity	-536.46M	-455.71M	-255.86M	-159.18M	42.80M	-41.88M
Cash Flow
Free Cash Flow	-69.17M	-79.05M	-57.11M	-70.57M	-9.74M	-11.94M
Operating Cash Flow	-53.76M	-56.25M	-35.61M	-47.40M	682.00K	-11.48M
Investing Cash Flow	-10.72M	-26.47M	-59.80M	-12.50M	-723.20M	-36.58M
Financing Cash Flow	35.28M	58.20M	118.55M	28.74M	815.23M	55.24M

Fat Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FAT, the sentiment is Negative. The current price of 1.96 is above the 20-day moving average (MA) of 1.94, below the 50-day MA of 2.04, and below the 200-day MA of 2.67, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 34.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FAT.

Fat Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	76 Outperform	$49.03M	18.54	19.09%	―	-1.30%	9.43%
BDL	71 Outperform	$55.47M	12.84	5.48%	1.84%	8.83%	41.90%
RRGB	55 Neutral	$125.01M	-2.05	92.02%	―	-3.09%	-30.16%
FAT	45 Neutral	$35.79M	―	38.50%	154.08%	0.96%	-57.29%
ARKR	45 Neutral	$26.32M	-1.88	-40.40%	―	-6.89%	-42.75%
NDLS	41 Neutral	$28.75M	-0.66	649.09%	―	-1.23%	-68.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Fat Brands Corporate Events

Fat Brands Reappoints Andrew Wiederhorn as CEO

On September 2, 2025, FAT Brands Inc. announced the reappointment of Andrew Wiederhorn as President and CEO, a role he previously held until May 2023. This leadership change is expected to impact the company’s strategic direction, with Mr. Wiederhorn’s extensive experience and previous tenure likely influencing future developments.

The most recent analyst rating on (FAT) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

Fat Brands Enters Confidentiality Agreement for Refinancing

On or about July 9, 2025, FAT Brands Inc. entered into a confidentiality agreement with certain holders of notes issued by its special purpose, whole business securitization financing subsidiaries. This agreement was to facilitate discussions on potential transactions involving refinancing or restructuring. The company disclosed certain confidential information as part of its public disclosure obligations, but no agreement has been reached yet, and negotiations are expected to continue.

The most recent analyst rating on (FAT) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.