FAT Brands (FAT, $3.53) to buy Johnny Rockets for $25 million
Restaurant company Fat Brands Inc. , owner of such restaurant chains as Fatburger and Ponderosa, has agreed to acquire the Johnny Rockets restaurant chain from the private equity firm Sun Capital Partners for about $25 million.
The acquisition is expected to be completed in September, following which , Fat Brands said it will have more than 700 franchised and company-owned restaurants globally, and it expects to generate annual system-wide sales more than $700 million.
According to Fat Brands, the transaction will be funded through cash on hand and proceeds generated from the company’s securitization facility.
Tickeron's analysis shows : FAT's price moved above its 50-day Moving Average on August 12, 2020. This price move indicates a change in the trend, and may be a buy signal for investors. In 17 of 21 cases where FAT's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 81%.
Current price $3.53 crossed the resistance line at $3.52 and is trading between $3.63 resistance and $3.52 resistance lines. Throughout the month of 07/13/20 - 08/12/20, the price experienced a +12% Uptrend. During the week of 08/05/20 - 08/12/20, the stock enjoyed a +9% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 30 of 40 cases where FAT's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 75%.
The Momentum Indicator exceeded the 0 level on August 11, 2020. Traders may consider buying the ticker or exploring call options. In 42 of 59 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 71%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where FAT's MACD histogram became positive, in 16 of 24 cases, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FAT advanced for three days, in 80 of 112 cases, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Bearish Trend Analysis
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 10 of 14 cases where FAT's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 71%.
The Aroon Indicator entered a Downtrend today. In 119 of 150 cases where FAT Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 79%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 21%. During the last month, the daily ratio of advancing to declining volumes was 3.2 to 1.
The Tickeron Valuation Rating of 20 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: FAT's P/B Ratio (-11.70) is slightly lower than the industry average of (2.93). P/E Ratio (0.00) is within average values for comparable stocks, (63.02). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (6.39). Dividend Yield (2.47) settles around the average of (1.23) among similar stocks. P/S Ratio (1.99) is also within normal values, averaging (1.89).
The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating fairly steady price growth. FAT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FAT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
FAT in +2.71% Uptrend, rising for three consecutive days on October 08, 2024
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where FAT advanced for three days, in of 250 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where FAT's RSI Indicator exited the oversold zone, of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where FAT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for FAT just turned positive on October 09, 2024. Looking at past instances where FAT's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
FAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 01, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on FAT as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for FAT crossed bearishly below the 50-day moving average on September 06, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FAT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FAT entered a downward trend on October 10, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 60%.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (5.809). P/E Ratio (0.000) is within average values for comparable stocks, (55.202). FAT's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.769). FAT's Dividend Yield (0.114) is considerably higher than the industry average of (0.038). P/S Ratio (0.144) is also within normal values, averaging (3.637).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FAT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 84, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. FAT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
an operator of franchised restaurants
Industry Restaurants