FAT Brands Inc. (FAT) Reports Q3 Loss, Lags Revenue Estimates

Core Insights - FAT Brands Inc. reported a quarterly loss of $3.39 per share, which was worse than the Zacks Consensus Estimate of a loss of $2.43, marking an earnings surprise of -39.51% [1] - The company's revenues for the quarter ended September 2025 were $140.01 million, missing the Zacks Consensus Estimate by 3.94% and down from $143.37 million a year ago [2] - FAT Brands has not surpassed consensus EPS estimates over the last four quarters and has seen its shares decline approximately 71.4% year-to-date [3] Financial Performance - The quarterly loss of $3.39 per share compares to a loss of $2.74 per share a year ago, indicating a worsening financial situation [1] - The company has topped consensus revenue estimates only twice in the last four quarters, highlighting inconsistent revenue performance [2] Future Outlook - The earnings outlook for FAT Brands is currently unfavorable, with a Zacks Rank of 4 (Sell), suggesting expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$3.16 on revenues of $138.5 million, and for the current fiscal year, it is -$12.67 on revenues of $567.36 million [7] Industry Context - The Retail - Restaurants industry, to which FAT Brands belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating a challenging environment [8] - The performance of FAT Brands may be influenced by the overall industry outlook, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]