Movers and SHAKERS
FAT Brands Inc. (FAT)
Solid 4Q as Operations Continue to Rebound
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.
4Q20 Results. Fat Brands reported 4Q20 revenue of $6.5 million, compared to $5.3 million in 4Q19. The increased revenue was driven by royalties, which rose to $4.7 million in the quarter from $3.8 million in 4Q19. Cost and expenses were impacted by a number of one-time items, which combined with higher interest expense resulted in a reported loss for the quarter of $7.67 million, or $0.64 per share, compared to a loss of $953,000, or $0.08 per share last year. We had projected revenue of $6 million and a net loss of $1.24 million, or $0.10 per share.
Improving Trends and Pipeline. Systemwide sales rose to $106.9 million, up from $72.2 million in the third quarter. Y-o-Y same store sales decline continued to improve, dropping to 9.4% in 4Q20, compared to down 13.2% in 3Q20. So far in 1Q21 weekly system-wide sales rose from $7.9 million in early January to $9.6 million in mid-March. In 4Q20, 29 new locations opened, increasing the full year total ...
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.