Fat Brands (FAT) AI Stock Analysis

• Market Cap: $36.14M
• Dividend Yield: 154.08%
• Average Volume (3M): 60.52K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 0.96%
• EPS Growth: -57.29%
• Country: US
• Employees: 2,089
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -2.88
• 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: 44.99
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 10.39
• Enterprise Value/Ebitda: -47.12
• 1Y Price Target: $12.50
• Price Target Upside: 537.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $2.00 ▲(2.04% Upside)

Fat Brands' overall stock score is primarily impacted by its poor financial performance, characterized by significant losses, high leverage, and negative cash flow. Technical analysis provides a neutral outlook with mild bullish momentum, while valuation is weak due to a negative P/E ratio, despite an unusually high dividend yield. The absence of earnings call data and corporate events limits further insights.

Fat Brands Business Overview & Revenue Model

Company Description

Fat Brands Inc. is a multi-brand restaurant company based in the United States that specializes in developing, marketing, and franchising a diverse portfolio of fast-casual and quick-service restaurant concepts. The company operates a variety of well-known brands, including Fatburger, Buffalo's Cafe, and Johnny Rockets, among others. Fat Brands focuses on creating unique dining experiences through its restaurants and aims to expand its footprint both domestically and internationally.

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	577.50M	592.65M	480.46M	22.50M	18.37M	2.17M
Gross Profit	156.45M	150.42M	149.95M	18.39M	12.48M	2.17M
EBITDA	-34.51M	-12.82M	52.30M	8.94M	4.59M	199.00K
Net Income	-212.33M	-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	-69.17M	-79.05M	-57.11M	3.03M	1.69M	1.49M
Operating Cash Flow	-53.76M	-56.25M	-35.61M	3.07M	1.84M	1.50M
Investing Cash Flow	-10.72M	-26.47M	-59.80M	-10.49M	-7.74M	-10.52M
Financing Cash Flow	35.28M	58.20M	118.55M	6.79M	6.53M	9.05M

Fat Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.96
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.96 is below the 20-day moving average (MA) of 1.99, above the 50-day MA of 1.94, and below the 200-day MA of 2.58, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.63 is Neutral, neither overbought nor oversold. The STOCH value of 44.63 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
BDL	71 Outperform	$59.20M	13.70	6.88%	1.70%	8.83%	41.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RAVE	61 Neutral	$39.65M	14.99	20.12%	―	-1.30%	9.43%
GTIM	52 Neutral	$15.09M	12.21	3.85%	―	1.84%	12.10%
FAT	48 Neutral	$36.14M	―	―	154.08%	0.96%	-57.29%
ARKR	43 Neutral	$25.71M	-1.81	-33.50%	―	-6.89%	-42.75%
NDLS	41 Neutral	$33.43M	―	―	―	-1.23%	-68.38%

Fat Brands Corporate Events

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.

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.

The most recent analyst rating on (FAT) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.

FAT Brands Reports Q2 2025 Financial Results

FAT Brands Inc. is a global franchising company that acquires, markets, and develops a diverse range of restaurant concepts, including fast casual, quick-service, and casual dining, with a portfolio of 18 brands and approximately 2,300 units worldwide.

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.

The most recent analyst rating on (FAT) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Fat Brands stock, see the FAT Stock Forecast page.