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In a challenging market environment, FAT Brands Inc. has seen its stock price touch a 52-week low, dipping to $2.22. According to InvestingPro data, the company maintains a significant 23.73% dividend yield despite showing weak overall financial health with a score of 1.41 out of 5. The parent company of popular restaurant chains has faced significant headwinds over the past year, reflected in a notable 1-year change with the stock value declining by 22.54%. The company’s challenges are evident in its financial metrics, with a concerning debt-to-capital ratio of 95% and negative free cash flow. Investors have been cautious as the company navigates through a period marked by economic uncertainty and shifting consumer habits, which have impacted the broader restaurant industry. The current price level presents a stark contrast to previous performance, signaling a period of reassessment for the company as it strives to adapt and strengthen its market position. InvestingPro analysis reveals 8 additional key insights about FAT Brands’ financial position in their comprehensive Pro Research Report.
In other recent news, FAT Brands Inc. reported its first-quarter 2025 financial results, revealing a net loss of $46 million, or $2.73 per diluted share, which significantly missed the expected earnings per share forecast of -$0.936. Revenue for the quarter came in at $142 million, falling short of the projected $151.6 million and marking a 6.5% decrease from the previous year. Additionally, adjusted EBITDA was reported at $11.1 million, a decline from $18.2 million in the same quarter last year. Loop Capital responded to these results by lowering its price target for FAT Brands from $12 to $10, while maintaining a Buy rating on the stock. The firm based this decision on weaker-than-expected comparable sales and EBITDA figures. Despite the financial challenges, FAT Brands is pursuing strategic initiatives, including plans to open over 100 new locations in 2025 and exploring refinancing options. These developments are part of the company’s efforts to improve its financial metrics and drive future growth.
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