FAT Brands Inc. (FATBB), the Beverly Hills-based restaurant franchising giant, has had a tumultuous few years. With an aggressive acquisition strategy that brought iconic brands like Fatburger, Johnny Rockets, and Twin Peaks under its umbrella, the company's ambition has been undeniable. However, the stock price has been on a roller coaster, reflecting Wall Street's uncertainty about the company's ability to successfully integrate these acquisitions and deliver consistent profitability. But what if the market is missing a crucial piece of the puzzle?

A deep dive into FAT Brands' recent financial data reveals a hidden gem that could signal a dramatic turnaround and significant upside potential. While most analysts are fixated on the company's debt levels and negative earnings per share, they are overlooking a key indicator: the **consistent growth in revenue per share**.

Revenue per share, a fundamental metric that measures the company's revenue generation capability on a per-share basis, has been steadily climbing over the past several quarters. In Q1 2024, FATBB recorded a revenue per share of $31.514, a significant increase from previous quarters. This consistent growth, despite challenges in the broader restaurant industry, suggests that FAT Brands' acquisition strategy is starting to bear fruit.

The company's diverse portfolio of brands, spanning various segments of the restaurant market from quick service to polished casual dining, provides a degree of resilience against economic fluctuations. Each brand caters to different consumer needs and preferences, offering FATBB a diversified revenue stream.

Furthermore, the company's franchise-heavy business model allows it to expand rapidly with minimal capital expenditure, leveraging the investment and operational expertise of its franchisees. This model, coupled with the growing popularity of established brands like Fatburger and Johnny Rockets, fuels the company's revenue growth.

Hypothesis:

The market's focus on FATBB's debt levels and negative earnings per share is overshadowing the significance of its consistent revenue per share growth. This metric suggests that the company is effectively leveraging its acquisitions and franchise model to generate increasing revenue.

Supporting Data:

Revenue per share in Q1 2024: **$31.514**

Revenue per share in previous quarters: **Consistently lower than Q1 2024** (See chart below)

Quarterly revenue growth year-over-year: **43.8%**

Revenue TTM: **$526,732,992**

Revenue Per Share Growth

Potential Implications:

If FAT Brands can continue its revenue per share growth trajectory while effectively managing its debt and improving operational efficiencies, it could soon achieve sustained profitability. This would likely trigger a re-evaluation of the company by Wall Street, leading to a substantial increase in its stock price.

"**Fun Fact:** Did you know that the iconic Fatburger, one of FAT Brand's most popular acquisitions, started as a small hamburger stand in Los Angeles in 1952? Its founder, Lovie Yancey, named it "Fatburger" because she wanted to emphasize the large size and juicy nature of her burgers. Today, Fatburger is a global brand, a testament to its enduring appeal and the potential of FAT Brands' acquisition strategy."

The key takeaway here is that FAT Brands might be a sleeping giant. The company's ability to drive revenue growth through its expanding portfolio of iconic brands, coupled with the operational leverage of its franchise model, could be the recipe for a remarkable success story. While Wall Street remains skeptical, savvy investors who look beyond the surface noise might find a golden opportunity to invest in a company poised for significant growth.