Monday, August 09, 2021
FAT Brands Inc. (FAT)
Reports 2Q21 Results
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.
2Q21 Results. Fat Brands reported 2Q21 revenue of $8.3 million, compared to $3.1 million in 2Q20. The increased revenue was driven by royalties, which rose to $6.2 million in the quarter from $2.2 million in 2Q20. FAT reported operating income of $2.0 million in the second quarter versus an operating loss of $2.6 million, excluding impairment charges, last year. A $6.4 million charge for debt extinguishment drove a reported $5.9 million, or $0.48 per share, loss in the quarter, compared to a $4.3 million, or $0.36 per share loss last year. We had projected revenue of $8 million and net income of $350,000, or $0.03 per share.
Sales Trends Continue Improving. Building on the first quarter, second quarter sales trends continued to improve. System-wide sales were $144 million, up from $114.4 million in the first quarter, and up 201.9% from the COVID impacted 2Q20. Average weekly sales were $20,056 in the quarter, up from $16,472 in the first quarter and improved to $22,674 in the first three weeks of 3Q21 …
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.
