FAT BRANDS Reports Second Quarter Earnings Results for FY2023
August 11, 2023
🌥️Earnings Overview
FAT BRANDS ($NASDAQ:FAT) announced its earnings results for the second quarter of the fiscal year 2023 (ending June 30, 2023) on August 3, 2023. Revenue totaled USD 106.8 million, which was a 3.9% increase compared to the same period in the previous year. Net income for the quarter showed an improvement over the prior year, at -7.1 million, as opposed to -8.2 million.
Market Price
During the day, the stock opened at $7.2 and closed at $7.4, up 2.1% from the previous closing price of 7.3. The company highlighted growth in their domestic operations and a strong customer response to new product releases. They also discussed plans to expand their presence in international markets and invest in new technologies that will help them better serve their customers. Overall, FAT BRANDS is in a positive position heading into the third quarter of FY2023.
The company has managed to turn a challenging quarter into a success, and this trend is expected to continue into the coming year. Shareholders are pleased with the results and are looking forward to the rest of the year with optimism. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fat Brands. More…
| Total Revenues | Net Income | Net Margin |
| 419.49 | -133.46 | -29.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fat Brands. More…
| Operations | Investing | Financing |
| -47.98 | -12.5 | 28.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fat Brands. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.23k | 1.42k | -11.58 |
Key Ratios Snapshot
Some of the financial key ratios for Fat Brands are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 179.2% | 70.4% | -2.5% |
| FCF Margin | ROE | ROA |
| -16.5% | 3.4% | -0.5% |
Analysis
As GoodWhale, we have conducted an analysis of FAT BRANDS‘s fundamentals and find that it has a low health score of 3/10 with regards to its cashflows and debt, suggesting it is less likely to ride out any potential crisis without the risk of bankruptcy. FAT BRANDS is strong in terms of growth, medium in dividend, and weak in asset and profitability. Based on this analysis, we have classified FAT BRANDS as a ‘cheetah’, meaning it has achieved high revenue or earnings growth but is considered less stable due to its lower profitability. As such, investors interested in FAT BRANDS should be aware of the potential risks associated with investing in a company that has relatively low health scores in terms of its cashflows and debt. For those who are comfortable taking on greater risks in order to potentially gain greater rewards, FAT BRANDS may be an attractive option. More…
Peers
In the fast-casual dining industry, FAT Brands Inc. competes with Fast Casual Concepts Inc, Create Restaurants Holdings Inc, and SFP Holdings Co Ltd. These companies all offer a similar product, but each has its own unique selling points. FAT Brands Inc. has a strong focus on healthy eating, while Fast Casual Concepts Inc. emphasizes convenience and affordability. Create Restaurants Holdings Inc. offers a more upscale experience, and SFP Holdings Co Ltd. focuses on sustainability.
– Fast Casual Concepts Inc ($OTCPK:FCCI)
Restaurant Brands International Inc. is a holding company that operates through its subsidiaries. The company owns and operates quick service restaurants. Its restaurant brands include Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. The company was founded in 1954 and is headquartered in Toronto, Canada.
– Create Restaurants Holdings Inc ($TSE:3387)
SFP Holdings Co Ltd is a Chinese conglomerate with a market cap of 41.93B as of 2022. The company has a Return on Equity of 8.57%. SFP Holdings Co Ltd is involved in a wide range of businesses, including real estate, hospitality, and healthcare. The company has a strong presence in China, with a large number of assets and operations in the country.
Summary
FAT BRANDS reported their earnings for the second quarter of FY2023 on August 3, showing total revenue of USD 106.8 million, a 3.9% increase year over year. Net income was USD -7.1 million, an improvement from the previous year’s -8.2 million. For investors, this news is encouraging, as FAT BRANDS is showing a steady growth in revenue, and a marked improvement in profits despite the pandemic. This signals that the company is adapting to the current environment and is ready for future challenges.
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