Présentation de l'entreprise
FAT Brands Inc. operates as a multi-brand restaurant franchising entity that acquires, develops, markets, and manages concepts ranging from quick service to polished casual dining across the United States, Canada, and international markets. The company functions within the Consumer Cyclical sector, specifically inside the Restaurants industry, positioning it as a business whose performance is directly correlated with consumer discretionary spending power. According to the available data, the company employs 2089 individuals and reports an annual revenue of $574.14M over the trailing twelve-month period. While the market cap is listed as N/A in the provided facts, the revenue figure of $574.14M establishes the organization as a significant player with substantial operational scale, despite the absence of a traditional market capitalization metric in the current dataset.
Santé financière
The financial statements for the trailing twelve months reveal a revenue stream of $574.14M contrasted sharply against a net income of $-234,694,000 and an EBITDA of $-12,452,000. This substantial gap between positive revenue and significant net losses indicates a challenging cost structure where operating expenses and losses likely exceed gross profits by a wide margin. The company maintains a gross margin of 24.7%, which suggests that for every dollar of sales, approximately 24.7 cents remain after direct costs of goods, though this is insufficient to cover overhead. Operating margins stand at -11.4%, reflecting that operating expenses consume more than 11% of revenue before interest and taxes, while profit margins deteriorate further to -39.3%, signaling that the company is generating negative net income on nearly every dollar of sales. Despite the net loss, the firm reports positive free cash flow of $37.84M, which provides a degree of financial flexibility to fund operations or capital expenditures without immediate external financing. However, liquidity is constrained by a cash balance of only $2.05M against a massive debt load of $1.57B, creating a precarious balance sheet where cash on hand covers less than 0.2% of total liabilities. The current ratio is recorded at 0.03, indicating that current assets are only 3% of current liabilities and highlighting severe short-term liquidity challenges. Return on Equity is N/A due to the negative equity position, while Return on Assets stands at -2.4%, revealing that the company's asset base is generating negative returns rather than contributing to profitability.
Évaluation de la valorisation
The valuation metrics provided show a P/E Ratio (TTM) and Forward P/E as N/A, which occurs when earnings are negative, rendering traditional earnings-based multiples inapplicable for assessing value. The Price to Book ratio is listed as -0.00, a figure that typically indicates the market price is below the book value or that the accounting equity is negative, suggesting the market does not value the firm's tangible assets at their recorded book value. Alternative valuation measures such as Price to Sales (N/A) and EV/EBITDA (-128.71) are heavily distorted by the company's negative earnings and lack of a standard market cap, resulting in an EV/EBITDA that is mathematically negative and not indicative of traditional value. The stock has experienced extreme volatility, with a 52-week high of $10.00 and a 52-week low of $0.06, meaning the share price has fluctuated between these two extremes over the last year. Given the low of $0.06, any trading price above this level would be significantly above the minimum floor, while any price below $10.00 represents a distance from the annual peak. The Beta of 1.22 indicates that the stock is 22% more volatile than the broader market, meaning price movements are amplified relative to general market shifts.
Growth & Income
Growth metrics show a Revenue Growth (YoY) of -2.3%, while Earnings Growth (YoY) is N/A due to the negative earnings base. The decline in revenue suggests a contraction in top-line sales, and the inability to calculate earnings growth from negative earnings implies that management has not yet restored profitability. The company reports a Dividend Yield of 1547.3%, a metric that is mathematically inflated when a company has negative net income, as the payout ratio is N/A. This yields a payout ratio of N/A, confirming that the company is not a sustainable dividend payer and cannot distribute a percentage of earnings because it is currently unprofitable. Consequently, the company reinvests its limited resources and positive free cash flow into maintaining its restaurant concepts rather than distributing income to shareholders. The overall growth and income profile is characterized by negative revenue momentum, significant losses, and an inability to provide sustainable dividends or positive returns on equity or assets.