FAT BrandsFABTQ 51 Return-on-Tangible-Equity is 0.00% as of Sep. 2025. GuruFocus rates FABTQ with a GF Score™ of 51/100 and a GF Value™ of $44.47 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 331 Restaurants companies, FAT Brands ranks worse than 302114.5% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. FAT Brands's annualized net income for the quarter that ended in Sep. 2025 was $-232.9 Mil. FAT Brands's average shareholder tangible equity for the quarter that ended in Sep. 2025 was $-1,432.7 Mil. Therefore, FAT Brands's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was N/A%.
The historical rank and industry rank for FAT Brands's Return-on-Tangible-Equity or its related term are showing as below:
During the past 10 years, FAT Brands's highest Return-on-Tangible-Equity was 83.63%. The lowest was 0.00%. And the median was 81.91%.
FABTQ's Return-on-Tangible-Equity is not ranked *
in the Restaurants industry.
Industry Median: 8.9 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
FAT Brands Return-on-Tangible-Equity Related Terms
FAT Brands Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for FAT Brands's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, FAT Brands's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where FAT Brands's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 0.00% mean?
FAT Brands (FABTQ) has a Return-on-Tangible-Equity of 0.00% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FAT Brands and its competitors. According to the industry distribution chart, FAT Brands ranks #999999 out of 331 companies in the Restaurants industry.
Is FAT Brands' Return-on-Tangible-Equity too high?
FAT Brands' current Return-on-Tangible-Equity is 0.00%. Based on the distribution chart, FAT Brands ranks #999999 out of 331 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, FAT Brands has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does FAT Brands' Return-on-Tangible-Equity compare to KITL and MCD?
According to the Restaurants industry distribution chart, FAT Brands ranks #999999 out of 331 companies for Return-on-Tangible-Equity. This places FAT Brands in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.90. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.90, based on 331 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on FAT Brands and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FAT Brands's current Return-on-Tangible-Equity is 0.00%. 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 $44.47, compared to a current price of $0.19 — trading 99.6% below its estimated fair value. The current Return-on-Tangible-Equity is 0.00%. FAT Brands' overall GF Score™ is 51/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For FAT Brands (FABTQ), the current Return-on-Tangible-Equity is 0.00% 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 $0.19 is trading 99.6% below its estimated GF Value™ of $44.47.
GuruFocus considers FAT Brands to be Possible Value Trap.
Key valuation signals for FABTQ:
Return-on-Tangible-Equity: 0.00%
GF Value™: $44.47 vs. price of $0.19 (99.6% 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.
51GF Score
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