Fat Brands (FAT) AI Stock Analysis

• Market Cap: $32.02M
• Dividend Yield: 517.12%
• Average Volume (3M): 60.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -5.26%
• EPS Growth: -44.78%
• Country: US
• Employees: 2,089
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -2.67
• Shares Outstanding: 16,614,400
• 10 Day Avg. Volume: 58,110
• 30 Day Avg. Volume: 60,522
• 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: 50.77
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 10.39
• Enterprise Value/Ebitda: -47.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.53 ▼(-8.10% Downside)

Fat Brands faces significant financial challenges, with negative profitability and high leverage being the most critical issues. Technical analysis supports a bearish outlook, and valuation metrics reflect financial distress. While the earnings call provided some positive strategic insights, these are insufficient to offset the financial and operational risks.

Positive Factors

International Expansion

International expansion into new markets like Japan enhances brand recognition and diversifies revenue streams, supporting long-term growth.

Manufacturing Expansion

The underutilized Georgia facility offers significant growth potential, boosting production efficiency and profitability as capacity increases.

Strategic Leadership Additions

New leadership can drive strategic initiatives and operational improvements, enhancing organizational effectiveness and competitive positioning.

Negative Factors

High Leverage

High leverage constrains financial flexibility and increases risk, potentially impacting the company's ability to invest in growth opportunities.

Revenue Decline

Declining revenue reflects operational challenges and market pressures, which may hinder the company's ability to sustain growth and profitability.

Net Loss Increase

Rising net losses indicate ongoing financial struggles, potentially affecting investor confidence and limiting resources for strategic initiatives.

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 through multiple streams, primarily from franchise fees and royalties from its franchised locations. The company charges franchisees an initial franchise fee and ongoing royalties based on a percentage of sales. Additionally, Fat Brands earns income from company-owned restaurants, where it retains the full revenue from food and beverage sales. The company also benefits from strategic partnerships and collaborations, which can include joint marketing efforts and co-branding initiatives that enhance brand visibility and drive sales. Moreover, Fat Brands may engage in real estate transactions, such as leasing properties to franchisees, contributing to its overall earnings. The company's expansion strategy, including acquisitions of other restaurant brands, further diversifies its revenue sources and strengthens its market presence.

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	-21.66M	-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: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.58 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.63, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 19.95 is Positive, neither overbought nor oversold. The STOCH value of 20.00 is Positive, 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	$33.11M	12.52	20.05%	―	0.35%	9.25%
BDL	71 Outperform	$57.24M	13.25	6.88%	1.79%	8.83%	41.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTIM	51 Neutral	$14.14M	11.44	3.85%	―	1.84%	12.10%
ARKR	47 Neutral	$25.60M	-1.83	-33.50%	―	-6.89%	-42.75%
NDLS	46 Neutral	$32.83M	―	―	―	-0.35%	-37.02%
FAT	41 Neutral	$32.02M	-0.14	―	517.12%	-5.26%	-44.78%

Fat Brands Corporate Events

FAT Brands Faces Financial Distress Amid Acceleration Notices

FAT Brands Inc. recently faced financial challenges as it received default notices under its base indentures for five special purpose financing subsidiaries. On November 17, 2025, the company received acceleration notices from UMB Bank for four of these subsidiaries, declaring the outstanding principal and accrued interest immediately due. The total principal outstanding is approximately $1,256.5 million, with accrued interest of $43.2 million. The company lacks the funds to cover these amounts, which could lead to significant financial distress, including potential bankruptcy proceedings. FAT Brands is in discussions with noteholders for possible refinancing or restructuring but has not reached any agreements yet.

The most recent analyst rating on (FAT) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

Fat Brands Engages in Confidential Refinancing Talks

On or about September 29, 2025, FAT Brands Inc. entered into a confidentiality agreement with certain holders of notes issued by its subsidiaries. This agreement was intended to facilitate discussions regarding potential refinancing or restructuring transactions. However, no agreement has been reached with the holders at this time. The company has disclosed certain confidential information to satisfy its obligations under the confidentiality agreement.

The most recent analyst rating on (FAT) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

Fat Brands Earnings Call: Legal Wins and Financial Hurdles

Fat Brands’ recent earnings call painted a mixed picture for investors, with significant positive strides being made alongside notable financial challenges. The call highlighted the resolution of legal matters, strategic leadership changes, and international expansion efforts as key positive developments. However, these were offset by a decline in revenue, an increased net loss, and ongoing debt restructuring efforts, which tempered the overall sentiment.

FAT Brands Reports Q3 2025 Financial Results

FAT Brands Inc. is a global franchising company that owns and operates a diverse portfolio of restaurant brands, specializing in fast casual, quick-service, and casual dining concepts worldwide. In its latest earnings report for the third quarter of 2025, FAT Brands reported a decline in total revenue by 2.3% to $140 million, compared to the same period last year. The company also faced a net loss of $58.2 million, with system-wide sales and same-store sales both experiencing declines. Despite these challenges, the company highlighted the success of its co-branding initiatives and strategic partnerships, which have shown promising results in boosting sales and transactions. FAT Brands is actively working on strengthening its financial position through strategic initiatives, including a potential equity raise and debt restructuring efforts. Looking forward, the company remains focused on expansion and operational improvements, aiming to achieve positive cash flow in the coming quarters.

FAT Brands Reports Q3 2025 Financial Results

On November 5, 2025, FAT Brands reported its financial results for the third quarter of 2025, highlighting a strong performance in its casual dining segment with a 3.9% growth in same-store sales. Despite a 2.3% decline in total revenue to $140 million and a net loss of $58.2 million, the company is focusing on strategic expansion and co-branding initiatives, which have shown promising results. FAT Brands is also working on debt restructuring and equity raising to strengthen its financial position, aiming for positive cash flow in future quarters.

The most recent analyst rating on (FAT) stock is a Hold 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 Settles Derivative Lawsuits with Stockholders

On August 1, 2025, FAT Brands Inc. reached a settlement agreement with its stockholders to resolve two derivative lawsuits filed in 2021 and 2022 related to a merger and recapitalization. The settlement involves corporate governance changes and a $10 million payment by the company’s insurers, with additional contributions of shares from Fog Cutter Holdings LLC. This agreement, pending court approval, will dismiss all claims without attributing liability to the defendants, potentially stabilizing the company’s governance and financial standing.

The most recent analyst rating on (FAT) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

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.