Critical Survey: FAT Brands (FAT) versus Its Competitors
FAT Brands (NASDAQ: FAT) is one of 58 publicly-traded companies in the “Eating places” industry, but how does it contrast to its peers? We will compare FAT Brands to similar businesses based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, earnings, risk and valuation.
This table compares FAT Brands and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FAT Brands Competitors||-2.85%||-67.53%||0.31%|
This is a summary of current ratings and target prices for FAT Brands and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FAT Brands Competitors||1163||4354||4499||208||2.37|
As a group, “Eating places” companies have a potential upside of 5.13%. Given FAT Brands’ peers stronger consensus rating and higher possible upside, analysts clearly believe FAT Brands has less favorable growth aspects than its peers.
Risk & Volatility
FAT Brands has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, FAT Brands’ peers have a beta of 1.25, indicating that their average stock price is 25% more volatile than the S&P 500.
Valuation and Earnings
This table compares FAT Brands and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|FAT Brands||$22.50 million||-$1.02 million||-37.33|
|FAT Brands Competitors||$1.98 billion||$195.62 million||15.80|
FAT Brands’ peers have higher revenue and earnings than FAT Brands. FAT Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional and Insider Ownership
1.3% of FAT Brands shares are held by institutional investors. Comparatively, 61.4% of shares of all “Eating places” companies are held by institutional investors. 2.8% of FAT Brands shares are held by company insiders. Comparatively, 15.4% of shares of all “Eating places” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
FAT Brands peers beat FAT Brands on 11 of the 13 factors compared.
FAT Brands Company Profile
FAT Brands Inc., a multi-brand franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts. As of April 22, 2019, it owned 7 restaurant brands, including Fatburger, Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Yalla Mediterranean, Ponderosa Steakhouse, and Bonanza Steakhouse with approximately 300 locations open and 200 under development worldwide. The company was founded in 2017 and is headquartered in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Capital Group Inc.
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