FAT Brands Inc. FATBW

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
21/100
Weak

About FAT Brands Inc.

FAT Brands Inc., a multi-brand restaurant franchising company, acquires, develops, markets, and manages quick service, fast casual, casual dining, and polished casual dining restaurant concepts in the United States, Canada, and internationally. It owns restaurant brands, including Round Table Pizza, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Pretzelmaker, Fazoli's, Fatburger, Johnny Rockets, Elevation Burger, Yalla Mediterranean, … Full FATBW analysis →

Competitive advantage assessment

Key risks

  • ROIC Below WACC or Peers ROIC at 25.9th percentile suggests inefficient capital deployment.
  • Elevated Debt Risk Debt serviceability is weak (score 0.22), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
24

Where FATBW ranks in Restaurants

FAT Brands Inc. ranks #49 of 57 scored companies in Restaurants by moat score — the top 86%. The widest moat in the group is Yum! Brands, Inc. (YUM) at 83/100.

Moat scores for companies ranked near FATBW in Restaurants
# Company Moat score Rating
45 Sweetgreen, Inc. SG 22/100 Weak
46 Reborn Coffee, Inc. REBN 22/100 Weak
47 Cannae Holdings, Inc. CNNE 22/100 Weak
48 FAT Brands Inc. FATBB 21/100 Weak
49 FAT Brands Inc. FATBW 21/100 Weak
50 FAT Brands Inc. - 8.25% Series FATBP 20/100 Weak
51 FAT Brands Inc. FAT 20/100 Weak
52 GEN Restaurant Group, Inc. GENK 19/100 Weak
53 Pinstripes Holdings, Inc. PNST 18/100 Weak

See every General Corporate company ranked by moat score →

How FATBW scores on the Corporate Default defenses

Pricing Power

Score 24 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 23 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 10 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 18 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 18 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 32 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding FATBW's moat

What is FAT Brands Inc.'s moat score?

FAT Brands Inc. (FATBW) scores 21 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #49 of 57 scored companies in Restaurants, the top 86%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 56 companies in Restaurants. Its strongest defense is Scale & Market Position (32/100) and its weakest is Customer Stickiness (10/100).

How does FAT Brands Inc. compare with other Restaurants companies?

FAT Brands Inc. ranks #49 of 57 scored companies in Restaurants by moat score. The widest moat in Restaurants is Yum! Brands, Inc. (YUM) at 83/100. The companies ranked closest are FAT Brands Inc. (FATBB) at 21 just above it and FAT Brands Inc. - 8.25% Series (FATBP) at 20 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 56 companies in Restaurants. The defenses are then weighted to produce the overall score out of 100.

Why is FAT Brands Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for FAT Brands Inc.?

The Corporate Default template measures 6 defenses, and FATBW scores: Pricing Power (24), Cost Advantage (23), Customer Stickiness (10), Capital Efficiency (18), Resilience (18), Scale & Market Position (32). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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