FAT Brands Inc., a franchising company, acquires, markets, and develops fast casual and casual dining restaurant concepts. As of November 29, 2017, it owned 5 restaurant brands, such as Fatburger, Buffalo's Cafe, Buffalo's Express, Ponderosa, and Bonanza Steakhouses that had approximately 300 locations open and 300 under development in 32 countries. The company was founded in 2017 and is based in Beverly Hills, California. FAT Brands Inc. is a subsidiary of Fog Cutter Capital Group Inc.
FAT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FAT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Fat Brands Inc ranked in the 0th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Fat Brands Inc ended up being:
The company's compound free cash flow growth rate over the past 1.17 years comes in at -0.56%; that's greater than just 1.44% of US stocks we're applying DCF forecasting to.
As a business, Fat Brands Inc experienced a tax rate of about 24% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 86.26% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as FAT, try DIS, DJCO, GDEN, GOOS, and HRB.
FAT Brands (FAT) has priced public offering of 360K shares of 8.25% Series B Cumulative Preferred Stock accompanied by five warrants at $25.00, for gross proceeds of ~$9M.Underwriters' over-allotment is an additional 54K shares of 8.25% Series B Cumulative Preferred Stock and/or 270K warrants. The closing date is July 16,...
Beverly Hills, CA, July 13, 2020 (GLOBE NEWSWIRE) -- FAT Brands Inc. (Nasdaq: FAT), today announced the pricing of an underwritten public offering of 360,000 shares of 8.25% Series B Cumulative Preferred Stock. Each share of 8.25% Series B Cumulative Preferred Stock will be accompanied by five warrants (“Warrants”), each Warrant to purchase one share of Common Stock at an exercise price of $5.00 per share of Common Stock. Each share of Series B Cumulative Preferred Stock and accompanying five Warrants is being offered at a price of $25.00. The shares of Series B Preferred Stock and Warrants will be issued separately but can only be purchased together in this offering. Each Warrant will be exercisable beginning on the earlier of one year from the date of issuance or the consummation of a...
FAT Brands (FAT) amends its S-1 filing to offer 400K preferred shares and warrants for the right to purchase 2M common shares through ThinkEquity. Each share of Series B preferred stock sold in the offering will be accompanied by five warrants to each purchase one share of common stock at...
Tasty.) Brands Inc., parent company of Fatburger, Buffalo’s Express, and six other restaurant concepts, announces the opening of a co-branded Fatburger and Buffalo’s Express in Fairbanks, AK. “Summer in the great north, when the days are longer and the sun hardly ever sets, is the perfect time to introduce the Fairbanks community to our delicious, freshly made burgers and spicy and flavorful chicken wings,” said Andy Wiederhorn, CEO of FAT Brands.
Tasty.) Brands Inc., parent company of Fatburger, Buffalo’s Express, and six other restaurant concepts, announces the opening of a co-branded Fatburger and Buffalo’s Express in North Richland Hills, TX. “Many things have changed during the pandemic, but not Americans’ love for delicious, freshly made burgers or spicy and flavorful chicken wings,” said Andy Wiederhorn, CEO of FAT Brands. “We’re excited to open our first Texas location, a co-branded Fatburger and Buffalo’s Express, to help satisfy that hunger.”