Fat Brands (FAT) AI Stock Analysis

• Market Cap: $33.71M
• Dividend Yield: 160.64%
• Average Volume (3M): 69.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 0.96%
• EPS Growth: -57.29%
• Country: US
• Employees: 2,089
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Restaurants
• EPS (TTM): -2.88
• Shares Outstanding: 16,614,400
• 10 Day Avg. Volume: 38,131
• 30 Day Avg. Volume: 69,249
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 48.23
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.04
• Enterprise Value/Ebitda: -79.10
• 1Y Price Target: $12.50
• Price Target Upside: 564.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 39 Underperform
• Price Target: $1.50 ▼(-20.21% Downside)

The overall stock score is heavily influenced by the company's poor financial performance and valuation, both scoring at the lowest end of the scale. Technical analysis also indicates bearish momentum, further weighing down the score. While corporate events show some strategic efforts, they do not significantly offset the financial and technical challenges.

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 faces significant financial challenges across all key areas. The income statement shows declining profitability and inconsistent revenue growth. The balance sheet highlights high leverage and negative equity, raising concerns about financial stability. Cash flow issues further underscore operational inefficiencies and weak cash generation, posing substantial risks to the company's financial health.

Income Statement

The income statement shows significant challenges, including negative net income and declining EBIT and EBITDA margins. Revenue growth has been inconsistent, with a notable drop in TTM performance. Gross profit margin has also deteriorated, indicating increased cost pressures or inefficiencies.

Balance Sheet

The balance sheet reveals high leverage, with a negative stockholders' equity and a problematic debt-to-equity ratio. The equity ratio is negative, suggesting insolvency risks. These factors highlight financial instability and potential liquidity issues.

Cash Flow

Cash flow analysis reflects negative operating and free cash flows, indicating poor cash generation ability. Free cash flow growth is negative, pointing towards deteriorating cash management. The operating cash flow to net income ratio is unfavorable, highlighting operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.46B	592.65M	480.46M	407.22M	118.88M	18.12M
Gross Profit	46.04B	150.42M	197.57M	158.58M	56.67M	14.29M
EBITDA	-20.55M	-12.82M	52.30M	21.51M	2.41M	-8.83M
Net Income	-46.12B	-189.85M	-90.11M	-126.19M	-31.58M	-14.86M
Balance Sheet
Total Assets	1.27B	1.29B	1.39B	1.21B	1.27B	121.14M
Cash, Cash Equivalents and Short-Term Investments	41.53M	23.38M	37.04M	28.67M	56.66M	3.94M
Total Debt	1.57B	1.47B	1.38B	1.12B	1.01B	97.92M
Total Liabilities	1.77B	1.74B	1.64B	1.37B	1.29B	163.03M
Stockholders Equity	-493.94M	-455.71M	-255.86M	-159.18M	42.80M	-41.88M
Cash Flow
Free Cash Flow	-64.28M	-79.05M	-57.11M	-70.57M	-9.74M	-11.94M
Operating Cash Flow	-41.06M	-56.25M	-35.61M	-47.40M	682.00K	-11.48M
Investing Cash Flow	-18.45M	-26.47M	-59.80M	-12.50M	-723.20M	-36.58M
Financing Cash Flow	23.02M	58.20M	118.55M	28.74M	815.23M	55.24M

Fat Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.88
• 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 1.88 is below the 20-day moving average (MA) of 1.90, below the 50-day MA of 2.18, and below the 200-day MA of 2.75, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 48.62 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	78 Outperform	$48.60M	18.34	21.75%	―	2.93%	20.81%
BDL	67 Neutral	$54.99M	12.73	6.88%	1.86%	8.83%	41.90%
Sector *	61 Neutral	$17.99B	12.87	-3.56%	2.97%	1.27%	-14.28%
RRGB	55 Neutral	$110.51M	―	92.02%	―	-3.09%	-30.16%
ARKR	46 Neutral	$25.86M	―	-33.50%	2.67%	-6.89%	-42.75%
NDLS	41 Neutral	$31.07M	―	-978.37%	―	-1.23%	-68.38%
FAT	39 Underperform	$33.71M	―	38.50%	160.64%	0.96%	-57.29%

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.

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.

FAT Brands Reports Q2 2025 Revenue Decline

On July 30, 2025, FAT Brands reported its financial results for the second quarter of 2025, revealing a 3.4% decline in total revenue to $146.8 million compared to the previous year. Despite the revenue drop, the company opened 18 new locations and is on track to meet its goal of over 100 restaurant openings in 2025. The company is focusing on expanding its manufacturing capacity and has implemented financial strategies to improve cash flow, including converting bonds and reducing general and administrative expenses.

Fat Brands’ Stock Warrants Expire and Delist

On July 16, 2025, FAT Brands Inc. saw the expiration of its common stock warrants (FATBW), initially issued on July 16, 2020. These warrants were delisted from the Nasdaq Stock Market LLC following their expiration. The expiration of these warrants means that any unexercised warrants will be automatically exercised via a cashless method by October 14, 2025, following the termination of the Warrant Agency Agreement.