FAT BrandsFABTQ -10.09%49 Current Ratio is 0.03 as of Sep. 2025, which is 92% below its 10-year median of 0.36. GuruFocus rates FABTQ with a GF Score™ of 49/100 and a GF Value™ of $42.98 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 363 Restaurants companies, FAT Brands ranks worse than 99.17% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. FAT Brands's current ratio for the quarter that ended in Sep. 2025 was 0.03.
FAT Brands has a current ratio of 0.03. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If FAT Brands has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for FAT Brands's Current Ratio or its related term are showing as below:
FABTQ'
s Current Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.36 Max: 1.28
Current: 0.03
During the past 10 years, FAT Brands's highest Current Ratio was 1.28. The lowest was 0.03. And the median was 0.36.
FABTQ's Current Ratio is ranked worse than 99.17% of 363
companies
in the Restaurants industry
Industry Median: 0.99
vs FABTQ: 0.03
FAT Brands (OTCPK:FABTQ) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
FAT Brands Current Ratio Related Terms
FAT Brands Current Ratio Historical Data
* Premium members only.
The historical data trend for FAT Brands's Current Ratio 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.
FABTQ vs KITL, MCD, SBUX: Current Ratio Comparison
For the Restaurants subindustry, FAT Brands's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Current Ratio distribution charts can be found below:
* The bar in red indicates where FAT Brands's Current Ratio falls into.
* 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.
FAT Brands (FABTQ) has a Current Ratio of 0.03 as of Sep. 2025. This is 92% below median its historical median of 0.36. Over the past decade, FAT Brands' Current Ratio has ranged from 0.03 to 1.28. According to the industry distribution chart, FAT Brands ranks #360 out of 363 companies in the Restaurants industry, placing it in the top 99.2%.
Is FAT Brands' Current Ratio too high?
FAT Brands' current Current Ratio of 0.03 is 92% below median its 10-year median of 0.36. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 1.28. The Restaurants industry median Current Ratio is 0.99. FAT Brands' value of 0.03 is 97% below this industry median. Based on the distribution chart, FAT Brands ranks #360 out of 363 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, FAT Brands has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FAT Brands' Current Ratio compare to KITL and MCD?
According to the Restaurants industry distribution chart, FAT Brands ranks #360 out of 363 companies for Current Ratio. This places FAT Brands in the lower half of its industry. The industry median Current Ratio is 0.99. FAT Brands' value of 0.03 is 97% below this benchmark. Historically, FAT Brands' own Current Ratio has ranged from 0.03 to 1.28 over the past decade. While the company's 10-year median is 0.36 vs. the industry median of 0.99, FAT Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Restaurants company?
The median Current Ratio among Restaurants companies is 0.99, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FAT Brands's current Current Ratio of 0.03 is 97% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Current Ratio is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAT Brands's current Current Ratio is 0.03, which is 92% below median its own 10-year median of 0.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FAT Brands stock overvalued right now?
Based on GuruFocus' analysis, FAT Brands (FABTQ) is currently considered Possible Value Trap. The stock's GF Value™ is $42.98, compared to a current price of $0.16 — trading 99.6% below its estimated fair value. The current Current Ratio is 0.03, which is 92% below median its 10-year median of 0.36 and 97% below the Restaurants industry median of 0.99. FAT Brands' overall GF Score™ is 49/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For FAT Brands (FABTQ), the current Current Ratio is 0.03 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is FAT Brands (FABTQ) Overvalued in 2026?
Based on GuruFocus' analysis, FAT Brands stock appears to be undervalued.
The current stock price of $0.16 is trading 99.6% below its estimated GF Value™ of $42.98.
GuruFocus considers FAT Brands to be Possible Value Trap.
Key valuation signals for FABTQ:
Current Ratio: 0.03 (92% below median its 10-year median of 0.36)
GF Value™: $42.98 vs. price of $0.16 (99.6% below fair value)
Industry Position: 97% below the Restaurants median (#360 of 363)
No single metric tells the full story. See the FABTQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. Its brands include Round Table Pizza, Fatburger, Johnny Rockets, Twin Peaks, and Elevation Burger among others. Geographically, the majority of the revenue for the company is generated from the United States.
49GF Score
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