Category: Food and Services

Tuesday, June 2, 2020

FAT Brands Inc. (FAT)

FAT Brands: Multi-brand Franchisor with Multiple Growth Avenues

FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, and acquires predominantly fast casual restaurant concepts. The company provides turkey burgers, chicken Sandwiches, chicken tenders, burgers, ribs, wrap sandwiches, and others. Its brand portfolio comprises Fatburger, Buffalo’s Cafe and Express, and Ponderosa and Bonanza. The company’s overall footprint covers nearly 32 countries. Fatburger generates maximum revenue for the company.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

We are Initiating Coverage on this Company.

Initiating Coverage. We are initiating coverage of FAT Brands Inc. Our rating is based on the current unknown impacts of the economic crisis on the restaurant industry and the Company in particular. However, we look favorably upon the Company’s management team, its past success in turning around acquired brands, growth potential, the Company’s M&A strategy, and solid existing financial position.


Company Overview. FAT Brands is a franchisor of various restaurant concepts. At the end of 2019, the Company’s franchisees operated 374 locations under seven different banners across four continents and 31 countries. System-wide revenues were $394 million in 2019. FAT generates revenues through one time franchise fees as well as ongoing royalty payments. The Company’s asset…










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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

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certification and important disclosures included in the full report. 
NOTE: investment decisions should not be based upon the content of
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making any investment decision. 

Too Busy to Shop?

(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section) 

Modern life is busy. We are constantly running around and do not always have time to go grocery shopping, often resulting in paying for take-out. In 1985, seventy-one percent of meals eaten at home were home-cooked. Today, that number is down to sixty percent and falling. Over a decade ago Middagsfrid created a meal kit delivery company in Sweden. The concept did not make its way over to the U.S. until around 2015 after Goldman Sachs reported they expected the industry to grow between $3 – $5 billion by 2020. Their estimate has still held and is still on track to reach that value. In the last half of 2018, 14.3 million households purchased meal kits, which was up 3.8 million from 2017.