FAT BrandsFABTQ 49 Net Margin % is -41.58% as of Sep. 2025. GuruFocus rates FABTQ with a GF Score™ of 49/100 and a GF Value™ of $74.40 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 366 Restaurants companies, FAT Brands ranks worse than 93.99% on this metric.
Net margin is calculated as Net Income divided by its Revenue. FAT Brands's Net Income for the
three
months ended in Sep. 2025 was $-58.2 Mil. FAT Brands's Revenue for the
three
months ended in Sep. 2025 was $140.0 Mil. Therefore, FAT Brands's net margin for the quarter that ended in Sep. 2025 was -41.58%.
The historical rank and industry rank for FAT Brands's Net Margin % or its related term are showing as below:
FABTQ'
s Net Margin % Range Over the Past 10 Years
Min: -82.02 Med: -18.76 Max: 41.93
Current: -39.33
FABTQ's Net Margin % is ranked worse than 93.99% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs FABTQ: -39.33
FAT Brands (OTCPK:FABTQ) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
FAT Brands Net Margin % Related Terms
FAT Brands Net Margin % Historical Data
* Premium members only.
The historical data trend for FAT Brands's Net 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.
FABTQ vs TWNPQ, KITL, CHSN: Net Margin % Comparison
For the Restaurants subindustry, FAT Brands's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Net Margin % distribution charts can be found below:
* The bar in red indicates where FAT Brands's Net 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.
FAT Brands (FABTQ) has a Net Margin % of -41.58% as of Sep. 2025. Net margin is the ratio of total net income to net sales. View historical data on FAT Brands and its competitors. According to the industry distribution chart, FAT Brands ranks #344 out of 366 companies in the Restaurants industry, placing it in the top 94%.
Is FAT Brands' Net Margin % too high?
FAT Brands' current Net Margin % is -41.58%. Based on the distribution chart, FAT Brands ranks #344 out of 366 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' Net Margin % compare to TWNPQ and KITL?
According to the Restaurants industry distribution chart, FAT Brands ranks #344 out of 366 companies for Net Margin %. This places FAT Brands in the lower half of its industry. The industry median Net Margin % is 2.06. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on FAT Brands and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAT Brands's current Net Margin % is -41.58%. 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 $74.40, compared to a current price of $0.21 — trading 99.7% below its estimated fair value. The current Net Margin % is -41.58%. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For FAT Brands (FABTQ), the current Net Margin % is -41.58% 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 $0.21 is trading 99.7% below its estimated GF Value™ of $74.40.
GuruFocus considers FAT Brands to be Possible Value Trap.
Key valuation signals for FABTQ:
Net Margin %: -41.58%
GF Value™: $74.40 vs. price of $0.21 (99.7% below fair value)
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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