How will FAT's 2025 EPS trend look?

**FAT's 2025 EPS trend is expected to remain under pressure.** Here's a detailed analysis:

1. **Analyst Forecasts and Recent Performance**:
- Noble Financial has lowered its FY2025 earnings estimates for FAT Brands, with the latest forecast indicating an EPS of ($8.61) for the year, down from the previous estimate of ($6.79). This reflects a more pessimistic outlook on FAT's earnings trajectory.
- The consensus estimate for FAT Brands' current full-year earnings is ($10.23) per share. This suggests that the analyst community is also adjusting their expectations downward.
2. **Recent Financial Performance and Challenges**:
- FAT Brands reported a net loss of $67.4 million for the fourth quarter, a significant increase from the $26.2 million net loss in the previous year. This indicates ongoing financial challenges that are likely to impact EPS negatively.
- Despite a 23.4% increase in total revenue for 2024, reaching $592.7 million, the company's quarterly revenue decreased, missing analyst estimates. This decline in revenue could further strain EPS in the coming year.
3. **Strategic Moves and Growth Prospects**:
- FAT Brands has undergone a spin-off of Twin Hospitality Group, which includes Twin Peaks and Smokey Bones restaurants. This strategic move could potentially enhance profitability if executed successfully.
- The company plans to open over 100 new locations in 2025, with a robust development pipeline indicating growth potential. However, the impact of these new openings on EPS in the short term is uncertain.
4. **Market Sentiment and Valuation**:
- FAT Brands has faced a 47% loss in its stock price over the last three years, falling short of the market return. This suggests that investors may be disappointed with the company's performance, which could persist if EPS does not show improvement.
- The stock's P/E ratio of -0.40 indicates that the company is not currently profitable as measured by EPS. This negative P/E ratio could persist if earnings do not turn positive or improve significantly.

In conclusion, while FAT Brands has made strategic moves and shown revenue growth, the current analyst forecasts and recent financial performance suggest that the company's EPS in 2025 is likely to remain under pressure. The company's ability to execute its growth plans and improve profitability will be crucial in determining the trajectory of its EPS.