Fat Brands (FAT) AI Stock Analysis

• Market Cap: $32.02M
• Dividend Yield: 208.28%
• 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: 3.76
• Enterprise Value/Gross Profit: 13.53
• Enterprise Value/Ebitda: -427.95
• 1Y Price Target: $10.00
• Price Target Upside: 557.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $1.50 ▼(-1.32% Downside)

Fat Brands faces significant financial and operational challenges, reflected in its low financial performance and valuation scores. Technical analysis indicates bearish momentum, further impacting the stock's outlook. While the earnings call provided some positive guidance, the overall financial distress and market sentiment weigh heavily on the stock's 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 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	432.22M	592.65M	480.46M	22.50M	18.37M	2.17M
Gross Profit	120.17M	150.42M	149.95M	18.39M	12.48M	2.17M
EBITDA	-3.80M	-12.82M	52.30M	8.94M	4.59M	199.00K
Net Income	-144.91M	-189.85M	-90.11M	-1.02M	-1.80M	-614.00K
Balance Sheet
Total Assets	1.25B	1.29B	1.39B	82.55M	57.96M	31.64M
Cash, Cash Equivalents and Short-Term Investments	7.65M	23.38M	37.04M	25.00K	653.00K	32.00K
Total Debt	1.49B	1.47B	1.38B	30.60M	15.40M	18.13M
Total Liabilities	1.79B	1.74B	1.64B	77.17M	52.22M	29.63M
Stockholders Equity	-536.46M	-455.71M	-255.86M	5.38M	5.74M	2.01M
Cash Flow
Free Cash Flow	-58.17M	-79.05M	-57.11M	3.03M	1.69M	1.49M
Operating Cash Flow	-43.34M	-56.25M	-35.61M	3.07M	1.84M	1.50M
Investing Cash Flow	-10.21M	-26.47M	-59.80M	-10.49M	-7.74M	-10.52M
Financing Cash Flow	23.72M	58.20M	118.55M	6.79M	6.53M	9.05M

Fat Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.52
• 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 1.52 is below the 20-day moving average (MA) of 1.83, below the 50-day MA of 1.91, and below the 200-day MA of 2.49, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 28.49 is Positive, neither overbought nor oversold. The STOCH value of 11.29 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
BDL	71 Outperform	$58.71M	13.59	6.88%	1.74%	8.83%	41.90%
RAVE	68 Neutral	$33.11M	12.52	20.05%	―	0.35%	9.25%
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	41 Neutral	$33.24M	―	―	―	-0.35%	-37.02%
FAT	40 Underperform	$32.02M	-0.14	―	208.28%	-5.26%	-44.78%

Fat Brands Corporate Events

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.