Comparing FAT Brands (FAT) & Its Competitors

FAT Brands (NASDAQ: FAT) is one of 58 public companies in the “Eating places” industry, but how does it weigh in compared to its competitors? We will compare FAT Brands to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

Institutional & Insider Ownership

1.3% of FAT Brands shares are held by institutional investors. Comparatively, 61.4% of shares of all “Eating places” companies are held by institutional investors. 2.8% of FAT Brands shares are held by company insiders. Comparatively, 15.4% of shares of all “Eating places” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

FAT Brands has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500. Comparatively, FAT Brands’ competitors have a beta of 1.25, meaning that their average stock price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for FAT Brands and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FAT Brands 0 1 0 0 2.00
FAT Brands Competitors 1162 4347 4491 208 2.37

As a group, “Eating places” companies have a potential upside of 4.36%. Given FAT Brands’ competitors stronger consensus rating and higher probable upside, analysts clearly believe FAT Brands has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares FAT Brands and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FAT Brands $22.50 million -$1.02 million -39.33
FAT Brands Competitors $1.99 billion $209.29 million 18.92

FAT Brands’ competitors have higher revenue and earnings than FAT Brands. FAT Brands is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares FAT Brands and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FAT Brands -12.14% -55.18% -3.22%
FAT Brands Competitors -2.69% -67.22% 0.40%

Summary

FAT Brands competitors beat FAT Brands on 11 of the 13 factors compared.

About FAT Brands

FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts. As of April 22, 2019, it owned 7 restaurant brands, including Fatburger, Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Yalla Mediterranean, Ponderosa Steakhouse, and Bonanza Steakhouse with approximately 300 locations open and 200 under development worldwide. The company was founded in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Capital Group Inc.

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