Start here if you're new
what it is
FAT Brands owns restaurant chains and charges franchisees fees to run them.
how it gets paid
Last year Fataq made $593M in revenue. Company-owned restaurant sales was the main engine at $320M, or 54% of sales.
what just happened
Revenue hit $429M, but EPS still landed at -$9.30.
At a glance
C balance sheet — red flag territory — real financial stress
45/100 earnings predictability — expect surprises
-$10.43 fy2024 eps est
$593M fy2024 rev est
8.8% operating margin
xvary composite: 27/100 — weak
What they do
FAT Brands owns restaurant chains and charges franchisees fees to run them.
You get 730 franchisees and 2,300 restaurants. Franchising means you pay someone else to open and run stores, so FAT keeps collecting fees while the operators carry the day-to-day mess. That is 190 company-owned restaurants versus 2,300 in the system.
How they make money
$593M
annual revenue
Company-owned restaurant sales
$320M
Franchise royalties
$145M
Franchise fees
$35M
Advertising fund revenue
$45M
Other revenue
$48M
The products that matter
flagship burger franchise
Fatburger
core brand · 1 of 18 banners
it's one of the legacy names inside this 18-brand portfolio, and the company is still opening locations even while the parent sits in Chapter 11.
brand relevance
casual dining growth asset
Twin Peaks
$75M–$100M raise discussed
management pointed to a $75M–$100M equity raise tied to this brand. that's not a side note — it's one of the few clearly stated sources of rescue capital.
restructuring hinge
wings franchise concept
Hurricane Grill & Wings
operating update amid Chapter 11
a new menu launch in february 2026 shows the brands are still operating, but menu updates do not solve $202M in debt.
business as usual, court not as usual
Key numbers
$593M
annual revenue
You are looking at $593M of sales with a $2M market cap. That gap is the whole joke.
8.8%
operating margin
Every $100 of sales leaves $8.80 on the floor before interest and taxes.
$202M
long-term debt
This is the bill that comes before the burger story. Debt is 101 times the market cap.
730
franchisees
These are the operators paying fees. More franchisees means more brand rent.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $202M (99% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for FATAQ right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $429M, but EPS still landed at -$9.30.
Revenue jumped 206% Vs. last year. That is a big number off a tiny base. The loss per share stayed ugly, and margin repair is still not showing up.
$429M
revenue
-$9.30
eps
+206%
revenue Vs. last year
revenue jump
The $429M quarter was big, but EPS still lost $9.30 a share.
source: company earnings report, 2025
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What could go wrong
the #1 risk is chapter 11 leaving nothing for common equity.
high
chapter 11 wipeout risk
The company filed voluntary Chapter 11 petitions on january 26, 2026. In plain English: creditors get negotiated with first, and common shareholders get whatever is left after that. Sometimes that number is zero.
equity sits behind the full debt stack
high
$202M debt against a $2M equity value
Long-term debt is $202M, or 99% of capital, while the market cap is roughly $2M. That's the contrast that matters. The balance sheet is telling you who has the leverage here, and it is not the common shareholder.
debt is about 100x the market cap
high
institutional exit
Disclosures from 18 firms showed institutional holdings down 63.12% last quarter. That's not a subtle signal. Larger holders appear to have decided the restructuring odds are not worth the seat at the table.
fewer natural buyers for the stock
med
shrinking sales during restructuring
Q3 2025 sales fell 5.5% from a year ago. Restructurings are easier when the business is stabilizing. They are harder when revenue is sliding and the operating margin is only 3.7%.
less cash generation to support a plan
A failed restructuring or weak recovery would hit 100% of the common equity claim. This is not downside volatility. It's existential risk.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
court-approved restructuring terms
You need to see what the bankruptcy plan actually gives common equity. If the plan mainly protects creditors, the stock's optionality can disappear fast.
calendar
next earnings report
The company is due to report on february 27, 2026. Watch for cash burn, restructuring costs, and whether sales erosion is getting worse.
metric
twin peaks capital raise
Management discussed a $75M–$100M raise tied to Twin Peaks. That's one of the few concrete funding levers on the table. If it fails, the restructuring story loses a major pillar.
trend
same-business stabilization
A 5.5% sales decline and a 3.7% operating margin are a bad mix. You want to see whether the brands can stop shrinking while the lawyers do their work.
Analyst rankings
earnings predictability
45 / 100
45 / 100 means the numbers are unreliable even before you layer in bankruptcy noise. in human-speak, analysts do not have a clean line of sight here.
risk rank
5
Risk rank 5 means this sits in the market's bottom tier for safety. You are not buying stability. You are buying a possible restructuring outcome.
source: institutional data
Institutional activity
institutional ownership data for FATAQ is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$0
current price
n/a
target midpoint · n/a from current
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