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FAT Brands (FAT)

FAT Brands is a leading global franchising company that strategically acquires, markets and develops fast casual and casual dining restaurant concepts around the world. The Company currently owns nine restaurant brands: Fatburger, Johnny Rockets, Bu alo's Cafe, Bu alo's Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 675 units worldwide.

Company profile

Ticker
FAT, FATBB
Exchange
Website
CEO
Andrew A. Wiederhorn
Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
1.FAT Brands Royalty I, LLC • 2.Buffalo’s Franchise Concepts Inc. • 3.Ponderosa Franchising Company LLC • 4.Ponderosa International Development Inc. • 5.Puerto Rico Ponderosa Inc. • 6.Hurricane AMT, LLC • 7.EB Franchises LLC • 8.Johnny Rockets Licensing Canada LLC • 9.Fatburger North America, Inc. • 10.Bonanza Restaurant Company LLC ...

FAT stock data

Calendar

29 Jul 22
1 Oct 22
26 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 35.92M 35.92M 35.92M 35.92M 35.92M 35.92M
Cash burn (monthly) 5.22M (no burn) (no burn) 2.56M 6.08M 1.86M
Cash used (since last report) 16.64M n/a n/a 8.15M 19.41M 5.94M
Cash remaining 19.28M n/a n/a 27.77M 16.51M 29.98M
Runway (months of cash) 3.7 n/a n/a 10.9 2.7 16.1

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
25 Aug 22 Kenneth Jeffery Anderson Series B Cumulative Preferred Stock Buy Acquire P Yes No 16.4699 1,250 20.59K 5,250
11 Aug 22 Wiederhorn Andrew Class B Common Stock Buy Acquire P No No 9 1,000 9K 4,333
2 Aug 22 Kenneth Jeffery Anderson Class A Common Stock Grant Acquire A No No 0 10,000 0 166,408.9
2 Aug 22 Amy Valentine Forrestal Class A Common Stock Grant Acquire A No No 0 10,000 0 13,901
2 Aug 22 Lynne Leigh Collier Class A Common Stock Grant Acquire A No No 0 10,000 0 10,000
13F holders Current Prev Q Change
Total holders 21 19 +10.5%
Opened positions 2 8 -75.0%
Closed positions 0 3 EXIT
Increased positions 3 3
Reduced positions 3 0 NEW
13F shares Current Prev Q Change
Total value 89.83M 91.23M -1.5%
Total shares 10.98M 10.91M +0.6%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Fog Cutter 7.03M $57.53M 0.0%
Hot GFG 1.54M $17.16M 0.0%
ADW Capital Partners 739.32K $4.4M 0.0%
ADW Capital Management 587.4K $4.38M 0.0%
Empery Asset Management 281.6K $1.2M 0.0%
Altium Capital Management 227K $965K 0.0%
Vanguard 172.53K $1.29M -2.8%
Geode Capital Management 101.04K $769K 0.0%
BK Bank Of New York Mellon 76.52K $570K +3.5%
Ridgewood Investments 68.49K $510K NEW
Largest transactions Shares Bought/sold Change
Ridgewood Investments 68.49K +68.49K NEW
Vanguard 172.53K -4.96K -2.8%
BK Bank Of New York Mellon 76.52K +2.58K +3.5%
WFC Wells Fargo & Co. 2.53K +2.53K NEW
Tower Research Capital 2.91K +1.88K +181.9%
UBS UBS Group AG - Registered Shares 2.66K -1.04K -28.1%
MS Morgan Stanley 1.16K -325 -22.0%
BLK Blackrock 14.16K +114 +0.8%
Proequities 0 0
Geode Capital Management 101.04K 0 0.0%

Financial report summary

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Risks
  • The novel coronavirus (COVID-19) outbreak has disrupted and is expected to continue to disrupt our business, which could continue to materially affect our operations, financial condition and results of operations for an extended period of time.
  • Health concerns arising from outbreaks of diseases, other than COVID-19, may have an adverse effect on our business.
  • Food safety and foodborne illness concerns may have an adverse effect on our business.
  • Our operating and financial results and growth strategies are closely tied to the success of our franchisees.
  • Our franchisees could take actions that could harm our business and may not accurately report sales.
  • If we fail to identify, recruit and contract with a sufficient number of qualified franchisees, our ability to open new franchised restaurants and increase our revenues could be materially adversely affected.
  • If we fail to open new domestic and international franchisee-owned restaurants on a timely basis, our ability to increase our revenues could be materially adversely affected.
  • Negative publicity relating to one of our franchised restaurants could reduce sales at some or all of our other franchised restaurants.
  • Our brands’ value may be limited or diluted through franchisee and third-party activity.
  • We have significant outstanding indebtedness under our whole-business securitization facilities, which require that we generate sufficient cash flow to satisfy the payment and other obligations under the terms of our debt and exposes us to the risk of default and lender remedies.
  • We may pursue opportunistic acquisitions of additional brands, and we may not find suitable acquisition candidates or successfully operate or integrate any brands that we may acquire.
  • The sale of alcoholic beverages at Twin Peaks Restaurants subjects us to additional regulations and potential liability.
  • Our success depends substantially on our corporate reputation and on the value and perception of our brands.
  • Failure to protect our service marks or other intellectual property could harm our business.
  • If our franchisees are unable to protect their customers’ credit card data and other personal information, our franchisees could be exposed to data loss, litigation, and liability, and our reputation could be significantly harmed.
  • We and our franchisees rely on computer systems to process transactions and manage our business, and a disruption or a failure of such systems or technology could harm our ability to effectively manage our business.
  • The retail food industry in which we operate is highly competitive.
  • Supply chain shortages or interruptions in the availability and delivery of food and other supplies may increase costs or reduce revenues.
  • Our business may be adversely impacted by changes in consumer discretionary spending, general economic conditions, or consumer behavior.
  • Our expansion into international markets exposes us to a number of risks that may differ in each country where we have franchised restaurants.
  • We depend on key executive management.
  • Labor shortages or difficulty finding qualified employees could slow our growth, harm our business and reduce our profitability.
  • Changes in labor and other operating costs could adversely affect our results of operations.
  • The Company faces risks related to pending government investigations
  • We are a party to stockholder litigation which could negatively impact our business, operating results and financial condition.
  • We could be party to litigation that could adversely affect us by increasing our expenses, diverting management attention or subjecting us to significant monetary damages and other remedies.
  • Our subsidiary Fog Cutter Acquisition, LLC is a party to environmental litigation which could result in significant legal expenses whether or not it is resolved favorably.
  • Changes in, or noncompliance with, governmental regulations may adversely affect our business operations, growth prospects or financial condition.
  • Failure to comply with antibribery or anticorruption laws could adversely affect our business operations.
  • We are controlled by Fog Cutter Holdings LLC, whose interests may differ from those of our public stockholders.
  • Our anti-takeover provisions could prevent or delay a change in control of our company, even if such change in control would be beneficial to our stockholders.
  • We may continue to issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our Common Stock, which could depress the price of our Common Stock.
  • The provision of our certificate of incorporation requiring exclusive venue in the Court of Chancery in the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against our directors and officers.
  • If our operating and financial performance in any given period does not meet the guidance that we provide to the public, our stock price may decline.
  • Our ability to pay regular dividends to our stockholders is subject to the discretion of our Board of Directors and may be limited by our holding company structure and applicable provisions of Delaware law.
Management Discussion
  • We operate on a 52-week or 53-week fiscal year ending on the last Sunday of the calendar year. In a 52-week fiscal year, each quarter contains 13 weeks of operations. In a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations, which may cause our revenue, expenses and other results of operations to be higher due to an additional week of operations.
  • Results of Operations of FAT Brands Inc.
  • Revenue - Revenue consists of royalties, franchise fees, advertising fees, restaurant sales, factory revenue and other revenue. Total revenue increased $185.3 million, or 1,241%, in the first two quarters of 2022, to $200.2 million compared to $14.9 million in the same period of 2021. The increase reflects revenue from the acquisition of GFG in July 2021, the acquisition of Twin Peaks in October 2021, the acquisition of Fazoli's in December 2021 and the acquisition of Native in December 2021 (collectively, the "2021 Acquisitions") and the continuing recovery from the negative effects of the COVID-19 pandemic on royalties from restaurant sales.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Avg
New words: accrual, analogy, appointed, authoritative, caf, caption, Chip, Chipman, counsel, Crest, difficulty, Employee, enacted, enhance, ERC, Firm, hearing, House, IAS, installment, Jun, labor, mediation, Nestl, rebrand, receipt, refundable, Retention, retrofit, Rosen, stay, Toll, Troubled, Vintage
Removed: exclusively, preceding, Regulation, Rule