Tuesday, April 13, 2021

FAT Brands Inc. (FAT)
Raising Price Target

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.

Ongoing Organic Improvement. FAT Brands continues to see a rebounding organic environment. Not only are COVID restrictions loosening but people seem to be energized to eat out. In addition, more existing locations are coming back on-line, with the majority of the remaining temporarily closed locations in unique (i.e. cruise ships/theme parks) locations. Unit expansion continues, with recent announcements on deals in France, Brazil, Chile, Italy, Peru, and Spain.


Strong M&A Pipeline.  FAT Brands’ M&A pipeline remains robust. We would anticipate at least one announcement in 1H21 and additional announcements during the second half of the year, with at least one Johnny Rockets sized acquisition. While adding another burger concept may be a stretch, the addition of a wing concept, sandwich, etc could be on the table in our view …

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.