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FAT BrandsFATPQ.PFD Debt-to-EBITDA is -41.46 as of Sep. 2025. The stock has 7 warning signs investors should review. Among 301 Restaurants companies, FAT Brands ranks worse than 332225.58% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for FAT Brands's Debt-to-EBITDA or its related term are showing as below:
FATPQ.PFD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -115.01 Med: 5.04 Max: 419.81
Current: -32.83
During the past 10 years, the highest Debt-to-EBITDA Ratio of FAT Brands was 419.81. The lowest was -115.01. And the median was 5.04.
FATPQ.PFD's Debt-to-EBITDA is ranked worse than 100% of 301
companies
in the Restaurants industry
Industry Median: 2.91
vs FATPQ.PFD: -32.83
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
FAT Brands Debt-to-EBITDA Related Terms
FAT Brands Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for FAT Brands's Debt-to-EBITDA 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.
FATPQ.PFD vs MCD, SBUX, YUM: Debt-to-EBITDA Comparison
For the Restaurants subindustry, FAT Brands's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where FAT Brands's Debt-to-EBITDA 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Sep. 2025) EBITDA data.
FAT Brands (FATPQ.PFD) has a Debt-to-EBITDA of -41.46 as of Sep. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on FAT Brands. According to the industry distribution chart, FAT Brands ranks #999999 out of 301 companies in the Restaurants industry.
Is FAT Brands' Debt-to-EBITDA too high?
FAT Brands' current Debt-to-EBITDA is -41.46. Based on the distribution chart, FAT Brands ranks #999999 out of 301 companies in the Restaurants industry, which is in the bottom quartile relative to peers.
How does FAT Brands' Debt-to-EBITDA compare to MCD and SBUX?
According to the Restaurants industry distribution chart, FAT Brands ranks #999999 out of 301 companies for Debt-to-EBITDA. This places FAT Brands in the lower half of its industry. The industry median Debt-to-EBITDA is 2.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Restaurants company?
The median Debt-to-EBITDA among Restaurants companies is 2.91, based on 301 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on FAT Brands. For the Restaurants industry, the median Debt-to-EBITDA is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAT Brands's current Debt-to-EBITDA is -41.46. 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?
FAT Brands (FATPQ.PFD) has a current Debt-to-EBITDA of -41.46. The current Debt-to-EBITDA is -41.46. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For FAT Brands (FATPQ.PFD), the current Debt-to-EBITDA is -41.46 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.
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.
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