Tuesday, March 22, 2022
FAT Brands Inc. (FAT)
Growth Continues in the Fourth Quarter
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.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
4Q21 Results. Fat Brands reported 4Q21 revenue of $74.2 million, up from $29.8 million in the third quarter and compared to $6.5 million in 4Q20. The increased revenue reflects the GFG and Twin Peaks acquisitions and about 10 days of revenue from the Fazoli’s and Native acquisitions. FAT reported adjusted EBITDA of $10.4 million in 4Q21. Net loss for the quarter was $19.6 million, or $1.38 per share, compared to a net loss of $3.6 million, or $0.26 per share in 3Q21 and a net loss of $7.7 million, or $0.64 per share, in 4Q20.
Solid Growth. Same store sales in the quarter rose 5.6% over the fourth quarter of 2019 and were up 8.5% if the recent acquisitions were included. Thirty new locations were opened during the quarter, bringing the full year count to 115. FAT ended the year with 2,369 locations, 761 franchise partners, and 333 multi-unit franchisees …
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.
