Fat Brands ( (FAT) ) has issued an update.
On May 8, 2025, FAT Brands reported its financial results for the first quarter of 2025, highlighting a 6.5% decline in total revenue to $142.0 million compared to the previous year. Despite the revenue drop, the company opened 23 new locations, marking a 37% increase from the previous year, and continued its international expansion with new agreements in France. The strategic spin-off of Twin Hospitality Group Inc. provided a $50 million dividend to shareholders, and the company is advancing towards a nearly 100% franchised model with plans to refranchise 57 Fazoli’s restaurants.
Spark’s Take on FAT Stock
According to Spark, TipRanks’ AI Analyst, FAT is a Neutral.
Fat Brands has potential due to revenue growth and strategic initiatives like the Twin Hospitality spin-off. However, financial instability with high leverage, persistent losses, and negative cash flows are significant concerns. The stock’s technical indicators show neutral momentum, and while valuation metrics like dividend yield are attractive, the negative P/E ratio highlights underlying risks.
To see Spark’s full report on FAT stock, click here.
More about Fat Brands
FAT Brands is a global franchising company that acquires, markets, and develops various dining concepts, including fast casual, quick-service, and casual dining. The company owns 18 restaurant brands and operates approximately 2,300 units worldwide.
Average Trading Volume: 39,194
Technical Sentiment Signal: Sell
Current Market Cap: $47.98M
For an in-depth examination of FAT stock, go to TipRanks’ Stock Analysis page.