FAT Brands Inc. (FAT): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how FAT Brands Inc. (FAT) operates and generates revenue in the competitive restaurant industry? This article dives into the history, ownership structure, and mission of FAT Brands, a leading global franchising company that strategically acquires, markets, and develops various restaurant concepts. Discover how this multi-brand operator, with a reported revenue of $592.65 million in 2024, leverages its asset-light model to minimize risks and maximize profits, and keep reading to understand the intricacies of FAT Brands' business model and its strategic approach to franchising.

FAT Brands Inc. (FAT) History

FAT Brands Inc. Founding Timeline

Year established

FAT Brands Inc. was established in 2010.

Original location

The company is headquartered in Los Angeles, California.

Founding team members

FAT Brands was founded by Andrew A. Wiederhorn, who serves as the Chairman of the Board.

Initial capital/funding

Details regarding the initial capital and funding are not available in the provided search results.

FAT Brands Inc. Evolution Milestones

FAT Brands Inc. Transformative Moments

• Strategic Acquisitions: The aggressive acquisition strategy, particularly the purchase of Global Franchise Group in 2021, marked a transformative period. This significantly scaled the company's operations and diversified its brand portfolio.
• Public Listing: The IPO in 2017 was a pivotal moment, providing FAT Brands with the financial resources to pursue its growth strategy through acquisitions.
• Debt Management and Organic Growth (2024): Shifting focus towards debt reduction and organic growth in 2024 signaled a strategic pivot towards financial stability and sustainable expansion.

To gain more insights into the investors and financial aspects, check this out: Exploring FAT Brands Inc. (FAT) Investor Profile: Who’s Buying and Why?

FAT Brands Inc. (FAT) Ownership Structure

FAT Brands Inc. features a multi-layered ownership structure that includes a mix of institutional, individual, and insider stakeholders. Understanding this structure is key to grasping the company's governance and strategic direction. For insights into the company's goals, check out the Mission Statement, Vision, & Core Values of FAT Brands Inc. (FAT).

FAT Brands Inc.'s Current Status

FAT Brands Inc. (FAT) is a publicly traded company. Its shares are listed on the Nasdaq Stock Market, allowing individuals and institutions to invest in the company.

FAT Brands Inc.'s Ownership Breakdown

As of the fiscal year 2024, the ownership of FAT Brands Inc. is distributed among various shareholders. The following table provides an overview of the ownership breakdown:

FAT Brands Inc.'s Leadership

FAT Brands Inc. is guided by a team of experienced leaders who oversee the company's strategic initiatives and day-to-day operations. Key members of the leadership team include:

• Andy Wiederhorn: Chairman of the Board
• Rob Rosenblum: Chief Executive Officer

FAT Brands Inc. (FAT) Mission and Values

FAT Brands Inc. aims to grow through strategic acquisitions and by nurturing its existing brands, focusing on delivering authentic and delicious dining experiences. The company values a culture of collaboration, innovation, and a commitment to excellence in all aspects of its operations.

FAT Brands Inc.'s Core Purpose

Official mission statement

FAT Brands Inc. does not have a single, universally publicized official mission statement. However, by piecing together information from company presentations, investor relations, and executive statements, we can infer their core mission focuses on:

• Acquiring and developing leading restaurant brands.
• Creating shareholder value through brand growth and efficient operations.
• Providing franchisees with the resources and support needed to succeed.
• Delivering high-quality dining experiences to customers.

Vision statement

While FAT Brands Inc. doesn't have a specific, formally declared vision statement, their overarching vision can be understood through their strategic actions and long-term goals:

• To become a leading global franchisor of restaurant brands.
• To build a diverse portfolio of iconic and emerging brands that cater to a variety of tastes and dining occasions.
• To drive sustainable growth and profitability through innovation, operational excellence, and strategic partnerships.
• To create a culture of collaboration, empowerment, and shared success among employees, franchisees, and stakeholders.

Company slogan/tagline

FAT Brands Inc. operates with a collection of different brands, each having its own slogan. Here are a few examples:

• Fatburger: 'The Last Great Hamburger Stand!'
• Johnny Rockets: 'The Original All-American Hamburger Chain.'
• Twin Peaks: 'Eats. Drinks. Scenic Views.'

To delve deeper into the financial aspects of FAT Brands Inc., explore Breaking Down FAT Brands Inc. (FAT) Financial Health: Key Insights for Investors.

FAT Brands Inc. (FAT) How It Works

FAT Brands Inc. operates by acquiring, managing, and expanding fast casual and casual dining restaurant brands across the globe, primarily through franchising.

FAT Brands Inc.'s Product/Service Portfolio

FAT Brands Inc.'s Operational Framework

FAT Brands Inc. focuses on expanding its restaurant concepts through franchising, leveraging a multi-brand strategy to cater to diverse consumer tastes and preferences. The company generates revenue through franchise fees, royalties based on franchisee sales, and company-owned restaurant sales. Operational efficiency is maintained through centralized management and shared services across its portfolio of brands.

• Acquisition and Brand Integration: FAT Brands identifies and acquires established restaurant brands with growth potential, integrating them into its existing portfolio to leverage synergies and economies of scale.
• Franchise Development and Support: The company focuses on expanding its brands through franchising, providing franchisees with comprehensive training, operational support, and marketing assistance to ensure brand consistency and success.
• Supply Chain Management: FAT Brands manages a centralized supply chain to ensure consistent quality and cost-effectiveness of ingredients and supplies across its restaurant network.
• Marketing and Brand Building: The company invests in marketing and advertising initiatives to enhance brand awareness and drive traffic to its restaurants, utilizing both traditional and digital channels.
• Real Estate and Site Selection: FAT Brands assists franchisees with site selection and lease negotiation, ensuring optimal locations for new restaurants based on market demographics and traffic patterns.

FAT Brands Inc.'s Strategic Advantages

• Diversified Brand Portfolio: FAT Brands operates a diverse portfolio of restaurant brands, reducing its reliance on any single concept and catering to a wide range of consumer preferences.
• Franchise-Focused Model: The company's franchise-focused model allows for rapid expansion with limited capital investment, leveraging the resources and expertise of its franchisees.
• Experienced Management Team: FAT Brands is led by an experienced management team with a proven track record of acquiring, managing, and growing restaurant brands.
• Strong Brand Recognition: Many of FAT Brands' concepts have strong brand recognition and a loyal customer base, providing a competitive advantage in the crowded restaurant industry.
• Synergies and Economies of Scale: The company leverages synergies and economies of scale across its portfolio of brands, reducing costs and improving profitability.

To gain more in-depth knowledge about the financial aspects, read this article: Breaking Down FAT Brands Inc. (FAT) Financial Health: Key Insights for Investors

FAT Brands Inc. (FAT) How It Makes Money

FAT Brands Inc. primarily generates revenue through franchising, where it licenses its brand names and operational systems to franchisees. Additionally, the company earns from company-owned restaurants and through royalties based on a percentage of franchisees' sales.

FAT Brands Inc. Revenue Breakdown

While precise percentage breakdowns may fluctuate year to year, the following table provides a generalized view of FAT Brands' revenue streams based on available information as of April 2025.

FAT Brands Inc. Business Economics

FAT Brands' business model is centered on expanding its brand portfolio through acquisitions and growing its footprint via franchising. Key aspects of its economic structure include:

• Franchise Model: The company focuses on a franchise-centric approach, allowing for rapid expansion with lower capital expenditure compared to solely relying on company-owned stores.
• Brand Portfolio: Owning a diverse range of restaurant brands allows FAT Brands to cater to various consumer preferences and mitigate risks associated with a single brand's performance.
• Acquisition Strategy: The company actively seeks to acquire established brands, leveraging its existing infrastructure and expertise to improve profitability and expand market presence.
• Pricing and Cost Management: Economic factors that influence the pricing strategies of FAT Brands Inc. include food costs, labor expenses, and market demand. Efficient supply chain management and cost control measures are crucial for maintaining profitability.

FAT Brands Inc. Financial Performance

Key indicators of FAT Brands' financial health and performance include:

• Revenue Growth: Monitoring the year-over-year growth in franchise royalties and restaurant sales is essential to gauge the company's expansion and market acceptance.
• Adjusted EBITDA: This metric provides insights into the company's operating profitability, excluding non-cash expenses and one-time items.
• Debt Levels: As FAT Brands has grown through acquisitions, understanding its debt obligations and ability to manage them is critical for assessing financial stability.
• Same-Store Sales Growth: Tracking same-store sales provides a measure of the performance of existing franchise locations, indicating brand health and customer loyalty.
• Net Income/Loss: Reviewing the net income or loss helps to understand the overall profitability of the company after all expenses and revenues are accounted for.

Further insights into FAT Brands Inc. can be found here: Exploring FAT Brands Inc. (FAT) Investor Profile: Who’s Buying and Why?

FAT Brands Inc. (FAT) Market Position & Future Outlook

FAT Brands Inc. is strategically navigating a competitive landscape to strengthen its market position and improve its future outlook. They are focusing on expanding their brand portfolio and enhancing operational efficiencies.

Competitive Landscape

Opportunities & Challenges

Industry Position

FAT Brands Inc. occupies a unique position in the restaurant franchising sector, characterized by:

• Acquisition-driven Growth: They actively acquire established restaurant brands to expand their portfolio and revenue streams.
• Franchise Model: Emphasizing a franchise-centric business model to reduce capital expenditure and operational complexities.
• Diversified Portfolio: Owning a range of brands across different dining segments, which helps mitigate risk.

For more insights into the company's financial health, check out: Breaking Down FAT Brands Inc. (FAT) Financial Health: Key Insights for Investors