FAT Brands Story

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FAT -- USA Stock  

USD 6.51  0.12  1.88%

As some conservative investors are getting more into consumer cyclical space, FAT Brands could be a your radar. We will evaluate why we are still optimistic in anticipation of a recovery. Here I will also expose some primary fundamental factors affecting FAT Brands' services, and outline how it will impact the outlook for investors this year.
Published over a month ago
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FAT Brands (NASDAQ:FAT) continues to gain
This firm reported the last year's revenue of 16.87 M. Reported Net Loss for the year was (8.14 M) with profit before taxes, overhead, and interest of 18.39 M. The company has Net Profit Margin of (48.27) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (13.24) %, which entails that for every $100 of revenue, it lost -0.13.

And What about dividends?

A dividend is the distribution of a portion of FAT Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. FAT Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. FAT Brands one year expected dividend income is about $0.04 per share.
Payment of Dividends and Other Cash Distributions is likely to drop to about (1 M) in 2021. Dividend Yield is likely to drop to 0.06 in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-1 M-1 M
Dividend Yield 0.07  0.06 
Dividends per Basic Common Share 0.28  0.24 
Investing in stocks that pay dividends, such as stock of FAT Brands, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in FAT Brands must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for FAT Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is FAT Brands's Liquidity

FAT Brands financial leverage refers to using borrowed capital as a funding source to finance FAT Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FAT Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between FAT Brands's total debt and its cash.

How FAT Brands utilizes its cash?

To perform a cash flow analysis of FAT Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash FAT Brands is receiving and how much cash it distributes out in a given period. The FAT Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. FAT Brands Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. FAT Brands reported Net Cash Flow from Operations of 1.72 Million in 2020

What did FAT Brands file with SEC?

The SEC filings are financial statements or other formal documents of FAT Brands that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to FAT Brands shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Other Events. Regulation FD Disclosure
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Unclassified Corporate Event. Unclassified Corporate Event
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to FAT Brands shareholders may or may not be submitted as SEC does not always require it.

Breaking down FAT Brands Further

The market capitalization of FAT Brands is $74.3 Million. FAT Brands shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company outstanding shares. 89.01 percent of FAT Brands outstanding shares that are owned by insiders denotes they have been buying or selling the stock in recent months in anticipation of some upcoming event. Note, that even with negative profits, if the true value of the entity is larger than the current market value, you may still be able to generate positive returns on investment in this company.

Ownership Breakdown

Retail Investors
9.36%
Insiders
89.01%
Retail Investors9.36
Insiders89.01
Institutions1.63

Our take on today FAT Brands gain

Newest Total Risk Alpha is up to 0.07. Price may drop again. FAT Brands shows above-average downside volatility for the selected time horizon. We advise investors to inspect FAT Brands further and ensure that all market timing and asset allocation strategies are consistent with the estimation of FAT Brands future alpha.

Our Conclusion on FAT Brands

Whereas some firms within the restaurants industry are still a little expensive, even after the recent corrections, FAT Brands may offer a potential longer-term growth to private investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take up new shares of FAT Brands nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to FAT Brands.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of FAT Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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