FAT Brands (FAT Brands) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is FAT Brands Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. FAT Brands's Operating Income for the three months ended in Dec. 2023 was $-3.5 Mil. FAT Brands's Interest Expense for the three months ended in Dec. 2023 was $-33.3 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. FAT Brands Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

The historical rank and industry rank for FAT Brands's Interest Coverage or its related term are showing as below:

FAT' s Interest Coverage Range Over the Past 10 Years
Min: 0.12 Med: 0.69 Max: No Debt
Current: 0.19

FAT's Interest Coverage is ranked worse than
98.84% of 259 companies
in the Restaurants industry
Industry Median: 6.79 vs FAT: 0.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

FAT Brands Interest Coverage Historical Data

The historical data trend for FAT Brands's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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FAT Brands Interest Coverage Chart

FAT Brands Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.48

0.12

0.19

FAT Brands Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	0.02	0.76	0.24	-

Competitive Comparison of FAT Brands's Interest Coverage

For the Restaurants subindustry, FAT Brands's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

FAT Brands's Interest Coverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Interest Coverage distribution charts can be found below:

* The bar in red indicates where FAT Brands's Interest Coverage falls into.

FAT Brands Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

FAT Brands's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, FAT Brands's Interest Expense was $-117.5 Mil. Its Operating Income was $22.7 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,322.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	22.703	/	-117.531
	=	0.19

FAT Brands's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, FAT Brands's Interest Expense was $-33.3 Mil. Its Operating Income was $-3.5 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,322.1 Mil.

FAT Brands did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

FAT Brands (NAS:FAT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

FAT Brands Interest Coverage Related Terms

Thank you for viewing the detailed overview of FAT Brands's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

FAT Brands (FAT Brands) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » FAT Brands Inc (NAS:FAT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

FATBB:USA FATBP.PFD:USA 5PN:Germany

Address

9720 Wilshire Boulevard, Suite 500, Beverly Hills, CA, USA, 90212

Website

https://www.fatbrands.com

FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, acquires and manages quick service, fast casual, casual dining and polished casual dining restaurant concepts around the world. The company operates as a franchisor of restaurants, where the company generally does not own or operate the restaurant locations but rather generates revenue by charging franchisees an initial franchise fee as well as ongoing royalties. For some of the company's brands, it also directly owns and operates restaurant locations. The primary sources of revenue are the sale of food and beverages at company restaurants and the collection of royalties, franchise fees and advertising revenue from sales of food and beverages at franchised restaurants.

Executives

Andrew Wiederhorn	director, officer: Chief Executive Officer	C/O WILSHIRE FINANCIAL SERVICES INC, 1776 SW MADISON STREET, PORTLAND OR 97205
John Stephen Allen	director	P.O. BOX 2732, GEARHART OR 97138
James G Ellis	director	C/O QUIKSILVER, INC., 15202 GRAHAM STREET, HUNTINGTON BEACH CA 92649
Fog Cutter Holdings, Llc	10 percent owner	9720 WILSHIRE BLVD, SUITE 500, BEVERLY HILLS CA 90212
Matthew Green	director
Peter R Feinstein	director
John Cameron Metz	director	13153 FABERGE PLACE, PALM BEACH GARDENS FL 33418
Kenneth Kepp	director	27929 SW 95TH AVENUE, SUITE 1101, WILSONVILLE OR 97070
Mark Elenowitz	director	400 PROFESSIONAL DRIVE, SUITE 310, GAITHERSBURG MD 20879
Tyler Berchtold Child	director	P.O. BOX 254, ROSS CA 94957
Vidal Paba Maria Carmen	director	CARRER CAVALLERS NUMBER 56-58, 4TH FLOOR 1ST DOOR, BARCELONA U3 08034
Mason Alan Wiederhorn	director	9720 WILSHIRE BLVD., PH, BEVERLY HILLS CA 90212
Lynne Leigh Collier	director	8523 FOREST HILLS BLVD, DALLAS TX 75218
John Squire Junger	director	16600 PARK LANE CIRCLE, LOS ANGELES CA 90049
Taylor Andrew Wiederhorn	officer: Chief Development Officer	9720 WILSHIRE BLVD,, SUITE 500, BEVERLY HILLS CA 90212