Monday, October 24, 2022
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q22 Results. FAT Brands reported 3Q22 revenue of $103.2 million, up from $102.8 million in the second quarter, and compared with $29.8 million in 3Q21. The increased revenue reflects the 2021 acquisitions. FAT reported adjusted EBITDA of $24.6 million in the quarter, down from $29.5 million in 2Q22. Net loss for the quarter was $23.5 million, or $1.42 per share and adjusted net loss was $16.3 million, or $0.98 per share. We had projected revenue of $104.3 million and a net loss of $14.9 million, or $0.90 per share.
Expanding Organic Growth Opportunities. FAT reported another 38 restaurants opened in the third quarter with over 100 opened year-to-date. Management is expecting an additional 25 units to open in 4Q22. The pipeline now exceeds 1,000 units, which will add some $60 million of incremental adjusted EBITDA once opened.
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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).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.