📊 FABTQ Key Takeaways
Is FABTQ a Good Investment? Thesis Analysis
Fat Brands exhibits critical financial distress with negative stockholders' equity of -$585.8M, severe liquidity constraints (0.03x current ratio), and persistent operating losses despite 23.4% revenue growth. The company is burning cash at an alarming rate (-$63.9M FCF) while carrying $1.3B in long-term debt, indicating structural insolvency and imminent default risk.
Why Buy FABTQ? Key Strengths
- Revenue growth of 23.4% YoY demonstrates operational traction in core business
- Slight net income improvement of 3.9% YoY suggests marginal cost control initiatives
- Total assets of $1.2B provide some asset backing despite equity deficiency
FABTQ Investment Risks to Consider
- Negative stockholders' equity of -$585.8M signals technical insolvency and potential bankruptcy filing
- Critical liquidity crisis with current ratio of 0.03x and only $2.1M cash against $1.8B total liabilities
- Severe cash burn with -$54.7M operating cash flow and -$63.9M free cash flow indicating inability to fund operations
- Operating margin of -9.7% and net margin of -36.9% demonstrate unprofitable core business
- Interest coverage of -21.7x shows company cannot service debt obligations from operations
- Long-term debt of $1.3B with negative cash generation creates imminent default risk
Key Metrics to Watch
- Stockholders' equity trajectory and path to positive equity
- Operating cash flow trend and return to positive cash generation
- Debt covenant compliance and refinancing negotiations with creditors
- Operating margin improvement and path to profitability
- Liquidity position and cash runway months remaining
FABTQ Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FABTQ Profitability Ratios
FABTQ vs Consumer Sector
How Fat Brands, Inc compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FABTQ Overvalued or Undervalued?
Based on fundamental analysis, Fat Brands, Inc has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FABTQ Balance Sheet & Liquidity
FABTQ 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Fat Brands, Inc's revenue has grown significantly by 2,533% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.85 indicates the company is currently unprofitable.
FABTQ Growth Metrics (YoY)
FABTQ Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $140.0M | -$44.8M | $-2.74 |
| Q2 2025 | $146.8M | -$39.4M | $-2.43 |
| Q1 2025 | $142.0M | -$38.3M | $-2.37 |
| Q3 2024 | $109.4M | -$24.7M | $-1.59 |
| Q2 2024 | $106.8M | -$7.1M | $-0.53 |
| Q1 2024 | $105.7M | -$32.1M | $-2.05 |
| Q3 2023 | $103.2M | -$23.4M | $-1.59 |
| Q2 2023 | $102.8M | -$7.1M | $-0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FABTQ Capital Allocation
FABTQ SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Fat Brands, Inc (CIK: 0001705012)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FABTQ
What is the AI rating for FABTQ?
Fat Brands, Inc (FABTQ) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FABTQ's key strengths?
Claude: Revenue growth of 23.4% YoY demonstrates operational traction in core business. Slight net income improvement of 3.9% YoY suggests marginal cost control initiatives.
What are the risks of investing in FABTQ?
Claude: Negative stockholders' equity of -$585.8M signals technical insolvency and potential bankruptcy filing. Critical liquidity crisis with current ratio of 0.03x and only $2.1M cash against $1.8B total liabilities.
What is FABTQ's revenue and growth?
Fat Brands, Inc reported revenue of $428.9M.
Does FABTQ pay dividends?
Fat Brands, Inc does not currently pay dividends.
Where can I find FABTQ SEC filings?
Official SEC filings for Fat Brands, Inc (CIK: 0001705012) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FABTQ's EPS?
Fat Brands, Inc has a diluted EPS of $-9.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FABTQ a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Fat Brands, Inc has a STRONG SELL rating with 95% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FABTQ stock overvalued or undervalued?
Valuation metrics for FABTQ: ROE of N/A (sector avg: 18%), net margin of -36.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy FABTQ stock in 2026?
Our dual AI analysis gives Fat Brands, Inc a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FABTQ's free cash flow?
Fat Brands, Inc's operating cash flow is $-54.7M, with capital expenditures of $9.3M. FCF margin is -14.9%.
How does FABTQ compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -36.9% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.03 (avg: 1.5).