Monday, October 12, 2020
FAT Brands Inc. (FAT)
Upgrading to Outperform with $8 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.
Upgrading to Outperform. We are upgrading FAT Brands to Outperform from Market Perform and initiating an $8.00 12-month price target. With the dust and euphoria settling from the Johnny Rockets acquisition announcement, when the shares ran up to $10.25, we believe the risk/reward situation has turned favorable for FAT Brands and its asset light, high growth restaurant franchising model.
Johnny Rockets Acquisition. Completed on September 22nd for $25 million, Johnny Rockets added some 322 locations, $316 million of system-wide sales, and 129 franchisees. FAT Brands now has over 700 restaurant locations, over $700 million of system-wide sales, and 305 franchisees, including 101 multi-unit franchisees. FAT now operates in 36 U.S. States and 37 countries …
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.