FAT Brands (FAT) vs. Its Competitors Financial Survey

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

Insider and Institutional Ownership

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

Profitability

This table compares FAT Brands and its peers’ 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 -2.85% -67.53% 0.31%

Valuation & Earnings

This table compares FAT Brands and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FAT Brands $22.50 million -$1.02 million -37.33
FAT Brands Competitors $1.98 billion $195.62 million 15.80

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

Analyst Ratings

This is a breakdown of current ratings and price targets for FAT Brands and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FAT Brands 0 1 0 0 2.00
FAT Brands Competitors 1163 4354 4499 208 2.37

As a group, “Eating places” companies have a potential upside of 5.13%. Given FAT Brands’ peers stronger consensus rating and higher probable upside, analysts clearly believe FAT Brands has less favorable growth aspects than its peers.

Risk & Volatility

FAT Brands has a beta of 2.06, suggesting that its share price is 106% more volatile than the S&P 500. Comparatively, FAT Brands’ peers have a beta of 1.25, suggesting that their average share price is 25% more volatile than the S&P 500.

Summary

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

FAT Brands Company Profile

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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