Movers and SHAKERS
FAT Brands Inc. (FAT)
What Has Been the COVID Impact?
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.
Raises Additional Capital
2Q20 Results. Revenue of $3.1 million and a reported net loss of $0.36 per share versus our estimates of $3.4 million and a loss of $0.17 per share. Included in the results, however, were a $3.2 million asset impairment charge, higher than normal re-franchising losses, and a $1.2 million derivative liability gain. If we adjust for the impairment and derivative, EBT was a loss of $3.4 million versus the reported loss of $5.3 million and our $2.5 million loss estimate.
Steakhouses Holding Back Results. System-wide sales declined 51.1% in the quarter but excluding Ponderosa and Bonanza locations, many of which remain shuttered, system-wide sales growth dropped 29.1% as the other concepts' switch to "to go" and delivery orders limited the COVID damage. Recently, FAT locations have ...
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.