Fat Brands (FATAQ)
OTHER OTC:FATAQ
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Fat Brands
(OTC:FATAQ)
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Rating:42Neutral
Price Target:
$0.28
▲(7.69% Upside)
Action:UpgradedDate:01/28/26
The score is primarily weighed down by weak financial performance (losses, negative equity, and negative cash flow) and bankruptcy-related corporate events. Technicals also remain bearish. Earnings call initiatives and cost actions provide only limited offset given ongoing debt and profitability challenges.
Positive Factors
Franchise scale and diversification
A diversified multi-brand franchise model with 2,200+ locations creates recurring royalty and fee income, low capital intensity per unit and geographic revenue diversification. This supports resilient cash flow generation and scalable growth if franchise economics remain sound.
Negative Factors
Chapter 11 filing
Filing Chapter 11 materially alters capital structure and creditor priority, risking equity dilution or cancellation. Restructuring can constrain access to capital, disrupt supplier and franchisee relationships, and create prolonged operational uncertainty that impairs long-term execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise scale and diversification
A diversified multi-brand franchise model with 2,200+ locations creates recurring royalty and fee income, low capital intensity per unit and geographic revenue diversification. This supports resilient cash flow generation and scalable growth if franchise economics remain sound.
Read all positive factors
Fat Brands (FATAQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.41M
Dividend Yield760.71%
Average Volume (3M)60.52K
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth-5.26%
EPS Growth-44.78%
CountryUS
Employees2,089
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)N/A
Shares Outstanding16,668,520
10 Day Avg. Volume58,110
30 Day Avg. Volume60,522
Financial Highlights & Ratios
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 Cap1.05K
Enterprise Value/Revenue2.56
Enterprise Value/Gross Profit9.47
Enterprise Value/Ebitda-42.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-10.61
Revenue Forecast (FY)$601.00M
Fat Brands Business Overview & Revenue Model
Company Description
FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts in the United States, Canada, and internationally. It...
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. Additi...
Fat Brands Financial Statement Overview
Summary
Income Statement
25
Negative
Balance Sheet
15
Very Negative
Cash Flow
30
Negative
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Balance Sheet |
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Fat Brands Technical Analysis
Negative
0.26
Price Trends
0.15
Negative
0.28
Negative
1.12
Negative
Market Momentum
-0.04
Negative
39.03
Neutral
18.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FATAQ, the sentiment is Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.15, and below the 200-day MA of 1.12, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 18.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FATAQ.
Fat Brands Risk Analysis
Fat Brands disclosed 38 risk factors in its most recent earnings report. Fat Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fat Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $38.80M | 18.57 | 19.70% | ― | 1.14% | 9.37% | |
65 Neutral | $53.90M | 17.07 | 8.92% | 1.89% | 7.29% | 75.13% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $24.27M | 6.41 | -29.84% | ― | -10.79% | -553.31% | |
49 Neutral | $71.19M | -0.76 | 132.11% | ― | 0.37% | -15.63% | |
48 Neutral | $13.30M | 17.64 | 3.18% | ― | -5.16% | -53.68% | |
42 Neutral | $1.41M | -0.15 | ― | 760.71% | -5.26% | -44.78% |
* Consumer Cyclical Sector Average
FATAQ
Fat Brands
0.02
-2.82
-99.33%
ARKR
Ark Restaurants
6.73
-3.17
-32.02%
BDL
Flanigan's Enterprises
29.00
5.19
21.79%
GTIM
Good Times Restaurants
1.26
-0.68
-35.05%
RAVE
Rave Restaurant Group
2.73
0.25
10.08%
NDLS
Noodles & Co
12.09
4.09
51.13%
Fat Brands Corporate Events
Business Operations and StrategyExecutive/Board ChangesLegal Proceedings
Fat Brands Initiates Chapter 11 Restructuring and Leadership Changes
Negative
Jan 27, 2026
On January 26, 2026, FAT Brands Inc. and its subsidiaries filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Southern District of Texas, aiming to deleverage their balance sheet, maximize stakeholder value and support contin...
Executive/Board ChangesShareholder Meetings
Fat Brands Announces 2025 Annual Stockholder Meeting Results
Positive
Dec 31, 2025
On December 23, 2025, FAT Brands Inc. held its 2025 Annual Meeting of Stockholders, at which holders of Class A and Class B common stock voted together on three proposals, reflecting an aggregate 2,558,278,520 votes of outstanding common stock. St...
Executive/Board ChangesLegal ProceedingsPrivate Placements and Financing
Fat Brands Faces Financial Strain After Acceleration Notice
Negative
Dec 2, 2025
On November 25, 2025, FAT Brands Inc. received an acceleration notice from UMB Bank regarding the FB Resid Notes, declaring the outstanding principal and interest immediately due. This financial strain, due to an event of default declared earlier ...
Legal ProceedingsPrivate Placements and Financing
FAT Brands Faces Financial Distress Amid Acceleration Notices
Negative
Nov 21, 2025
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...
Private Placements and Financing
Fat Brands Engages in Confidential Refinancing Talks
Neutral
Nov 14, 2025
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 restructuri...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
FAT Brands Reports Q3 2025 Financial Results
Neutral
Nov 5, 2025
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 mi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.