FAT Brands, Inc. (FAT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carrols Restaurant Group, Inc.

El Pollo Loco Holdings, Inc.

Biglari Holdings, Inc.

Potbelly Corp.

Red Robin Gourmet Burgers, Inc.

TH International Ltd.

Noodles & Co.

FAT Brands, Inc.

Nathan's Famous, Inc.

The ONE Group Hospitality, Inc.

Fiesta Restaurant Group, Inc.

Why is FAT Brands, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -310.13% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD -65.09 MM
NET PROFIT(HY) At USD -104.48 MM has Grown at -24.21%
DEBT-EQUITY RATIO (HY) Highest at -265.97 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -95.99%, its profits have fallen by -26%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -95.99% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Leisure Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is FAT Brands, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

FAT Brands, Inc.

-96.45%

-0.83

115.80%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

102.48%

EBIT Growth (5y)

-310.13%

EBIT to Interest (avg)

Debt to EBITDA (avg)

48.71

Net Debt to Equity (avg)

-2.70

Sales to Capital Employed (avg)

0.58

Tax Ratio

2.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

9.23%

ROCE (avg)

0.71%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

-0.01

EV to EBIT

-32.63

EV to EBITDA

-286.28

EV to Capital Employed

1.76

EV to Sales

2.38

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.41%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET PROFIT(HY)

Higher at USD -104.48 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 35.61 times

RAW MATERIAL COST(Y)

Fallen by -7.38% (YoY

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD -65.09 MM

NET PROFIT(HY)

At USD -104.48 MM has Grown at -24.21%

DEBT-EQUITY RATIO (HY)

Highest at -265.97 %

DIVIDEND PER SHARE(HY)

Lowest at USD 35.61

NET SALES(Q)

Lowest at USD 140.01 MM

INTEREST(Q)

Highest at USD 41.52 MM

Here's what is working for FAT Brands, Inc.

Net Profit

Higher at USD -104.48 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Debtors Turnover Ratio

Highest at 35.61 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for FAT Brands, Inc.

Operating Cash Flow

Lowest at USD -65.09 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD -104.48 MM has Grown at -24.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at -265.97 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 140.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Interest

Highest at USD 41.52 MM

in the last five periods and Increased by 5.46% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend per share

Lowest at USD 35.61

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)