"Rising Food Prices Prompt Diners to Opt for Smaller Menu Items in Restaurants"
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 12 2025
0mins
Should l Buy FAT?
Source: CNBC
Shift in Dining Trends: Consumers are increasingly ordering appetizers instead of higher-priced entrees, with appetizer orders up 20% year over year, reflecting a trend towards more affordable dining options amid food inflation.
Rise of Private Labels: Many consumers are shifting to private label brands in grocery stores to save money, with perceptions of these brands improving significantly over the past five years, as they can offer savings of 10-20% compared to national brands.
Food Inflation Insights: Despite a decrease from 2022 highs, food inflation remains persistent, with food-at-home prices rising 1.9% to 2.7% year-over-year, and "food away from home" inflation even higher at 3.7%.
Challenges in the Supply Chain: Ongoing tariffs and supply chain issues are contributing to price increases, particularly for perishable items, and relief is not expected soon, as rebuilding the supply chain takes time.
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Analyst Views on FAT
About FAT
FAT Brands Inc. is a global franchising company, which acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. It owns 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Smokey Bones, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. Round Table Pizza is the franchisor of quick service restaurants located in California and the western United States. Hot Dog on a Stick is the franchisor of quick service restaurants located in regional malls in California and the western United States. Johnny Rockets is an international restaurant franchise and offers menu items including Certified Angus Beef cooked-to-order hamburgers, chicken sandwiches, and malts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Bankruptcy Filing: FAT Brands has filed for Chapter 11 bankruptcy in the Southern District of Texas to restructure over $1.4 billion in debt, stemming from an aggressive acquisition-driven growth strategy that left the company overleveraged and liquidity-constrained.
- Operations Continue: Despite the bankruptcy filing, operations across FAT Brands' portfolio are ongoing as the company seeks to deleverage its balance sheet and negotiate a restructuring plan with bondholders and other creditors to restore financial stability.
- Potential Brand Sales: Industry insiders suggest that the bankruptcy filing increases the likelihood of FAT Brands unloading one or more of its chains, which could significantly impact its future market positioning and brand portfolio.
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- Additional Discount Campaign: Between February 13 and 17, customers can use code RTP258 to receive a 14% discount on any regular or heart-shaped Large Pizza, further stimulating sales and increasing customer loyalty.
- Brand Philosophy Reinforcement: Tisha Bartlett, Vice President of Marketing, emphasizes that Valentine's Day and National Pizza Day allow the brand to better embody its motto of sharing pizza with loved ones, strengthening emotional connections with customers.
- Commitment to Quality: Since its founding in 1959, Round Table Pizza has been recognized for its dedication to using premium, fresh ingredients, with handcrafted pizzas establishing its reputation as
See More
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- Earnings Surprise: Teradyne's fourth-quarter earnings report exceeded market expectations on both revenue and earnings per share, leading to a 22.2% surge in pre-market trading to $305.00, indicating strong investor confidence in its financial performance.
- Optimistic Outlook: The company forecasts first-quarter adjusted EPS between $1.89 and $2.25, significantly above the analyst estimate of $1.24, showcasing robust profitability and market demand.
- Revenue Projections Raised: Teradyne anticipates first-quarter revenue in the range of $1.15 billion to $1.25 billion, well above the analyst expectation of $927.72 million, reflecting the company's competitive edge and growth potential in the market.
- Positive Market Reaction: The substantial increase in stock price not only reflects investor approval of the company's performance but may also attract more institutional investors, potentially driving further stock price appreciation.
See More
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- Strong Earnings Report: SanDisk's second-quarter results exceeded expectations, leading to a 20.9% surge in pre-market trading, with shares reaching $652.00, indicating strong market confidence in its financial health.
- Optimistic Q3 Guidance: The company forecasts third-quarter revenue between $4.4 billion and $4.8 billion, with non-GAAP diluted earnings per share expected to be between $12 and $14, suggesting ongoing improvement in growth potential and profitability.
- Joint Venture Extension: SanDisk announced the extension of its joint venture with Japan's Kioxia Corp. until December 31, 2034, further solidifying their strategic partnership in storage technology and enhancing market competitiveness.
- Positive Market Reaction: The significant rise in stock price reflects investor optimism about the company's future prospects, which may also attract more institutional investors, thereby elevating the company's standing in the industry.
See More
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- Increased Deliveries: The company delivered 160 airplanes in the quarter, indicating a significant improvement in operational performance, despite not meeting overall financial expectations.
- Market Reaction: Boeing's stock fell 3%, reflecting investor concerns over the loss figures in the earnings report, even with strong revenue growth, which has dampened confidence in future profitability.
- Industry Impact: Boeing's performance fluctuations may affect overall confidence in the aerospace manufacturing sector, particularly against the backdrop of global supply chain recovery and rising demand, leading investors to adopt a more cautious outlook on the industry's prospects.
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- Operations Continue: Despite the bankruptcy filing, operations across FAT Brands' portfolio are ongoing as the company seeks to deleverage its balance sheet and negotiate a restructuring plan with bondholders and other creditors to restore financial stability.
- Potential Brand Sales: Industry insiders suggest that the bankruptcy filing increases the likelihood of FAT Brands unloading one or more of its chains, which could significantly impact its future market positioning and brand portfolio.
- Stock Price Plunge: Following the bankruptcy announcement, shares of FAT Brands plummeted 41% in Tuesday morning trading, reflecting market concerns over its financial health and skepticism regarding the success of its restructuring efforts.
See More
