Company Overview
FAT Brands Inc. operates as a multi-brand restaurant franchising company that acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts across the United States, Canada, and international markets. The company owns specific restaurant brands including Round Table Pizza and functions within the Consumer Cyclical sector, specifically inside the Restaurants industry. This industry classification indicates that the company's performance is closely tied to consumer discretionary spending patterns and economic cycles affecting dining out habits. In terms of scale, the company reports a market cap of N/A and has generated annual revenue of $574.14M while employing 2089 individuals. The absence of a listed market cap figure alongside the reported revenue suggests that the company may be in a pre-IPO phase or has delisted, meaning traditional public market valuation metrics are not currently applicable. The revenue figure of $574.14M establishes the total volume of sales generated by its restaurant operations over the trailing twelve months, serving as the primary indicator of operational scale despite the lack of a public market capitalization to gauge investor sentiment.
Financial Health
The company reported a revenue of $574.14M for the trailing twelve months, yet it recorded a net income of $-234,694,000 and an EBITDA of $-12,452,000. The significant gap between the positive revenue of $574.14M and the substantial negative net income reveals a highly leveraged cost structure where operating expenses and interest obligations far exceed gross profits. Despite the negative net income and EBITDA, the company generated positive free cash flow of $37.84M, which indicates a degree of financial flexibility derived from cash conversion efficiency before financing activities. However, this liquidity is constrained by a cash balance of only $2.05M against a total debt load of $1.57B. The balance sheet is heavily leveraged, evidenced by the massive debt obligation relative to minimal cash reserves, rather than being conservative. Liquidity risk is highlighted by a current ratio of 0.03, which indicates that the company's current assets are insufficient to cover its current liabilities without relying on asset sales or refinancing. Regarding return metrics, the Return on Equity is N/A and the Return on Assets is -2.4%, revealing that management effectiveness is currently negative as the company destroys asset value through its operations.
Valuation Assessment
The trailing P/E ratio is N/A and the forward P/E is also N/A, which implies that traditional earnings-based valuation models cannot be applied due to the company's lack of profitable earnings over the trailing period. The price-to-book ratio stands at -0.00, indicating that the market price is below the book value or that the company has negative equity, suggesting the market does not assign a premium to its tangible assets. Alternative valuation metrics such as the price-to-sales ratio, which is N/A, and the EV/EBITDA of -128.71, suggest that the company is trading at a significant discount or premium relative to its earnings power, though the negative EV/EBITDA reflects the negative earnings environment. The 52-week high is $10.00 and the 52-week low is $0.06, placing the stock in a highly volatile range where the current trading price fluctuates between these extremes. The beta value is 1.22, which means the stock's price volatility is 22% higher than the broader market, indicating increased sensitivity to market movements.
Growth & Income
Revenue growth year-over-year stands at -2.3%, while earnings growth is N/A, indicating that the company is currently contracting in terms of top-line sales rather than expanding. Since earnings are not growing and are negative, the concept of earnings growing faster or slower than revenue does not apply in a traditional sense, as the company is operating at a loss. The dividend yield is listed at 1547.3% with a payout ratio of N/A, which presents an anomalous metric that requires careful interpretation given the negative net income. Given the negative net income of $-234,694,000, a sustainable payout ratio is impossible, meaning the company cannot fund dividends from current earnings and the reported yield likely stems from a technical anomaly or stock price manipulation rather than a dividend program. The overall growth and income profile for FAT Brands Inc. is characterized by negative revenue growth, a lack of profitability, and a dividend metric that is not sustainable under current accounting conditions.