Gross Margin % is calculated as gross profit divided by its revenue. FAT Brands's Gross Profit for the
three
months ended in Dec. 2024 was $36.3 Mil. FAT Brands's Revenue for the
three
months ended in Dec. 2024 was $145.3 Mil. Therefore, FAT Brands's Gross Margin % for the quarter that ended in Dec. 2024 was 24.97%.
Warning Sign:
FAT Brands Inc gross margin has been in long-term decline. The average rate of decline per year is -21.3%.
The historical rank and industry rank for FAT Brands's Gross Margin % or its related term are showing as below:
FATBB'
s Gross Margin % Range Over the Past 10 Years
Min: 25.38 Med: 47.67 Max: 81.73
Current: 27.85
During the past 10 years, the highestGross Margin % of FAT Brands was 81.73%. The lowest was 25.38%. And the median was 47.67%.
FATBB's Gross Margin % is ranked worse than 79.66% of 349
companies
in the Restaurants industry
Industry Median: 46.7
vs FATBB: 27.85
FAT Brands had a gross margin of 24.97% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for FAT Brands was -21.30% per year.
FAT Brands Gross Margin % Historical Data
The historical data trend for FAT Brands's Gross Margin % 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.
Competitive Comparison of FAT Brands's Gross Margin %
For the Restaurants subindustry, FAT Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where FAT Brands's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
FAT Brands (NAS:FATBB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
FAT Brands had a gross margin of 24.97% for the quarter that ended in Dec. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
FAT Brands Gross Margin % Related Terms
Thank you for viewing the detailed overview of FAT Brands's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FATBB has been successfully added to your 