-1.84%
-29.70%
-30.61%
-28.76%
-51.93%
-64.58%
-2.09%
AI Spotlight on FAT
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.
Market Data
| Last Price | 3.74 |
| Change Percentage | -1.84% |
| Open | 3.86 |
| Previous Close | 3.81 |
| Market Cap ( Millions) | 65 |
| Volume | 164441 |
| Year High | 9.47 |
| Year Low | 3.57 |
| M A 50 | 5.43 |
| M A 200 | 5.46 |
Financial Ratios
| FCF Yield | -135.94% |
| Dividend Yield | 14.97% |
| ROE | 46.55% |
| Debt / Equity | -374.86% |
| Net Debt / EBIDTA | 5358.37% |
| Price To Book | -0.17 |
| Price Earnings Ratio | -0.43 |
| Price To FCF | -0.74 |
| Price To sales | 0.11 |
| EV / EBITDA | 56.09 |
News
- Jan -30 - Sports bar chain Twin Peaks is going public. These restaurant companies are the next to watch
- Jan -28 - Hot Dog on a Stick Stomps Out New Utah Location in St. George
- Jan -23 - FAT Brands Provides Update to Warrant Holders in connection with Twin Hospitality Spin-Off
- Jan -21 - Buffalo's Cafe Brings a Herd of New Drinks to Bar Menu
- Jan -17 - FAT Brands Announces Record and Distribution Dates for Special Stock Dividend in connection with Twin Hospitality Spin-Off
- Jan -16 - FAT Brands Expands With New Tri-Branded Location in Texas
- Jan -10 - FAT Brands to Provide 10,000 Meals to First Responders and Fire Evacuees in Los Angeles
- Jan -08 - Wave of New Drinks Crash into Hurricane Grill & Wings
- Jan -03 - Here's Why Investors Should Retain FAT Brands Stock for Now
- Jan -03 - FAT BRANDS ALERT: Bragar Eagel & Squire, P.C. is Investigating FAT Brands Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm
- Dec -18 - FAT Brands Inc. Announces Participation in the 27th Annual ICR Conference
- Dec -18 - Great American Cookies and Marble Slab Creamery Add Five Locations in Texas
- Dec -16 - Johnny Rockets Closes 2024 With Continued International Growth
- Dec -02 - FAT Brands Foundation Launches Holiday Giving Campaign
- Dec -02 - Celebrate National Cookie Day with Buy One, Get One Free Cookie Cake Slice at Great American Cookies
- Dec -02 - Oh, Johnny! Johnny Rockets Celebrates National Johnny Day with Free Shakes
- Dec -02 - FAT Brands Inc. to Participate in the Noble Capital Markets 20th Annual Emerging Growth Equity Conference
- Nov -30 - 5 Stocks Trading Near $5 That Pay Massive Double-Digit Ultra-High-Yield Dividends
- Nov -27 - Fatburger Announces Opening of Second Chicago Area Location
- Nov -26 - Pretzelmaker® Announces Latest Opening in Clear Lake, Iowa
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Restaurant
Expected Growth : 13 %
What the company do ?
FAT Brands Inc.'s Restaurant segment operates and franchises restaurants under various brands, including Fatburger, Buffalo's Cafe, and Hurricane Grill & Wings.
Why we expect these perspectives ?
FAT Brands Inc.'s 13% growth in the Restaurant segment is driven by increasing brand recognition, strategic marketing efforts, and expansion into new markets. Additionally, menu innovation, improved operational efficiency, and effective cost management contribute to the growth. Furthermore, the company's focus on digital transformation, including online ordering and delivery, also supports the segment's growth.
Segment n°2 -> Royalties
Expected Growth : 12 %
What the company do ?
FAT Brands Inc. royalties refer to the fees paid to the company by its franchisees for the use of its brands, trademarks, and operating systems.
Why we expect these perspectives ?
FAT Brands Inc.'s 12% royalty growth is driven by increasing brand recognition, strategic partnerships, and expansion into new markets. Rising demand for franchising and licensing opportunities, coupled with effective brand management, contributes to the growth. Additionally, the company's diversified portfolio of brands, including Fatburger and Buffalo's Cafe, benefits from a loyal customer base and consistent marketing efforts.
Segment n°3 -> Advertising Fees
Expected Growth : 11 %
What the company do ?
Advertising Fees from FAT Brands Inc. refers to the costs incurred by the company to promote its brands, including marketing and advertising expenses.
Why we expect these perspectives ?
FAT Brands Inc.'s 11% growth in Advertising Fees is driven by increasing brand awareness, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital marketing and social media presence has contributed to the growth. Furthermore, the rise of e-commerce and online shopping has led to higher demand for advertising services, resulting in increased revenue.
Segment n°4 -> Factory
Expected Growth : 10 %
What the company do ?
The Factory is a retail concept from FAT Brands Inc. offering a unique shopping experience with a curated selection of fashion, beauty, and lifestyle products.
Why we expect these perspectives ?
FAT Brands Inc.'s Factory segment growth is driven by increasing demand for co-branded restaurants, strategic partnerships, and expansion into new markets. Additionally, menu innovation, digital transformation, and effective marketing strategies contribute to the 10% growth rate.
Segment n°5 -> Franchise Fees
Expected Growth : 12 %
What the company do ?
Franchise fees from FAT Brands Inc. refer to the initial and ongoing fees paid by franchisees to the company for the right to operate a franchise location, including royalties and advertising fees.
Why we expect these perspectives ?
FAT Brands Inc.'s 12% growth in Franchise Fees is driven by increasing brand recognition, strategic marketing efforts, and expansion into new markets. Additionally, the company's focus on digital transformation, improved operational efficiency, and strong relationships with franchisees have contributed to the growth. Furthermore, the rise of the quick-service restaurant industry and growing demand for convenience foods have also supported the increase in Franchise Fees.
Segment n°6 -> Other
Expected Growth : 11 %
What the company do ?
FAT Brands' 'Other' segment includes franchise royalties, advertising fees, and interest income from its various brands.
Why we expect these perspectives ?
FAT Brands Inc.'s 11% growth in 'Other' segment is driven by increasing demand for its franchise brands, successful marketing initiatives, and strategic partnerships. Additionally, the company's focus on digital transformation, menu innovation, and operational efficiencies have contributed to the growth. Furthermore, the segment has benefited from the company's expansion into new markets and territories, leading to increased revenue and profitability.
Fat Brands Inc. Products
| Product Range | What is it ? |
|---|---|
| Fatburger | A fast-casual restaurant chain serving burgers, sandwiches, and salads |
| Buffalo's Cafe | A casual dining restaurant chain serving buffalo-style chicken wings and American comfort food |
| Elevation Burger | A fast-casual restaurant chain serving organic and grass-fed beef burgers |
| Yalla Mediterranean | A fast-casual restaurant chain serving Mediterranean-inspired bowls and sandwiches |
| Ponderosa Steakhouse | A casual dining restaurant chain serving steaks, seafood, and American comfort food |
| Bonanza Steakhouse | A casual dining restaurant chain serving steaks, seafood, and American comfort food |
| Hurricane Grill & Wings | A casual dining restaurant chain serving wings, burgers, and American comfort food |
FAT Brands Inc.'s Porter Forces
Threat Of Substitutes
FAT Brands Inc. operates in the restaurant industry, where substitutes are readily available. However, the company's diverse portfolio of brands, including Fatburger, Elevation Burger, and Yalla Mediterranean, helps to mitigate the threat of substitutes.
Bargaining Power Of Customers
FAT Brands Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's brands have a strong reputation, making it difficult for customers to negotiate prices.
Bargaining Power Of Suppliers
FAT Brands Inc. relies on a network of suppliers for ingredients and materials. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly if they are sole suppliers of critical ingredients.
Threat Of New Entrants
The restaurant industry is highly competitive, and new entrants can easily enter the market. FAT Brands Inc. must continually innovate and differentiate its brands to maintain market share.
Intensity Of Rivalry
The restaurant industry is highly competitive, with many established brands competing for market share. FAT Brands Inc. must continually innovate and differentiate its brands to maintain market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 122.72% |
| Debt Cost | 7.69% |
| Equity Weight | -22.72% |
| Equity Cost | 13.22% |
| WACC | 6.43% |
| Leverage | -540.10% |
FAT Brands Inc. : Quality Control
FAT Brands Inc. passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| CAKE | The Cheesecake Factory Incorporated operates restaurants. It operates two bakeries that produces cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and … |
| ARKR | Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. As of December 20, 2021, it owned and operated 17 restaurants and bars, including … |
| JACK | Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of November 23, 2021, it operated and franchised approximately 2,200 Jack in the Box quick-service … |
| PZZA | Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. It operates through four segments: Domestic Company-Owned … |
| BLMN | Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. The company operates through two segments, U.S. and … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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FAT Brands
A-Score
1-Year Total Return ->
🥈
Jack in the Box
A-Score
1-Year Total Return ->
🥉
Papa John's
A-Score
1-Year Total Return ->
4
The Cheesecake Factory
A-Score
1-Year Total Return ->
5
Bloomin Brands
A-Score
1-Year Total Return ->
6
