FAT vs. PEP

Last updated Jun 3, 2026

FAT (FAT Brands Inc.) and PEP (PepsiCo, Inc.) are both stocks. FAT operates in Restaurants (Consumer Cyclical), while PEP operates in Beverages - Non-Alcoholic (Consumer Defensive). Over the past 5 years, FAT returned -48.69%/yr vs 2.20%/yr for PEP. At a 0.05 correlation, their price movements are largely independent.

Performance

FAT vs. PEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FAT Brands Inc. (FAT) and PepsiCo, Inc. (PEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAT achieves a -48.32% return, which is significantly lower than PEP's -0.18% return.

FAT

• 1D: 0.00%
• 1M: 0.00%
• YTD: -48.32%
• 6M: -73.93%
• 1Y: -92.54%
• 3Y*: -62.32%
• 5Y*: -48.69%
• 10Y*: —

PEP

• 1D: 0.34%
• 1M: -9.79%
• YTD: -0.18%
• 6M: -2.65%
• 1Y: 12.81%
• 3Y*: -5.36%
• 5Y*: 2.20%
• 10Y*: 6.41%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FAT vs. PEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAT FAT Brands Inc.	-48.32%	-89.39%	-3.66%	32.64%	-50.03%	86.50%	30.77%	-1.21%	-44.62%	-21.20%
PEP PepsiCo, Inc.	-0.18%	-1.85%	-7.60%	-3.29%	6.78%	20.56%	11.67%	27.38%	-4.81%	8.11%

Correlation

The correlation between FAT and PEP is -0.01, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.01
Correlation (3Y) Calculated over the trailing 3-year period	0.09
Correlation (5Y) Calculated over the trailing 5-year period	0.08
Correlation (All Time) Calculated using the full available price history since Oct 24, 2017	0.05

Fundamentals

Market Cap FAT : $2.91M PEP : $194.68B
EPS FAT : -$12.65 PEP : $6.37
PS Ratio FAT : 0.01 PEP : 2.04
Total Revenue (TTM) FAT : $574.14M PEP : $95.45B
Gross Profit (TTM) FAT : $157.40M PEP : $51.60B
EBITDA (TTM) FAT : -$45.08M PEP : $15.08B

Return for Risk

FAT vs. PEP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FAT

FAT Risk / Return Rank: 3
FAT Sharpe Ratio Rank: 5
FAT Sortino Ratio Rank: 1
FAT Omega Ratio Rank: 0
FAT Calmar Ratio Rank: 2
FAT Martin Ratio Rank: 8

PEP

PEP Risk / Return Rank: 57
PEP Sharpe Ratio Rank: 60
PEP Sortino Ratio Rank: 55
PEP Omega Ratio Rank: 51
PEP Calmar Ratio Rank: 57
PEP Martin Ratio Rank: 61

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FAT vs. PEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FAT Brands Inc. (FAT) and PepsiCo, Inc. (PEP). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FAT	PEP	Difference
Sharpe ratio Return per unit of total volatility	-0.95	0.59	-1.55
Sortino ratio Return per unit of downside risk	-2.54	1.07	-3.61
Omega ratio Gain probability vs. loss probability	0.56	1.12	-0.56
Calmar ratio Return relative to maximum drawdown	-0.99	0.76	-1.75
Martin ratio Return relative to average drawdown	-1.38	2.13	-3.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FAT vs. PEP - Sharpe Ratio Comparison

The current FAT Sharpe Ratio is -0.95, which is lower than the PEP Sharpe Ratio of 0.59. The chart below compares the historical Sharpe Ratios of FAT and PEP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FAT	PEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.95	0.59	-1.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.74	0.12	-0.86
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.33	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.41	0.38	-0.79

Drawdowns

FAT vs. PEP - Drawdown Comparison

The maximum FAT drawdown since its inception was -97.48%, which is greater than PEP's maximum drawdown of -73.92%. Use the drawdown chart below to compare losses from any high point for FAT and PEP.

Drawdown Indicators

	FAT	PEP	Difference
Max Drawdown Largest peak-to-trough decline	-97.48%	-73.92%	-23.56%
Max Drawdown (1Y) Largest decline over 1 year	-94.21%	-16.25%	-77.96%
Max Drawdown (3Y) Largest decline over 3 years	-96.59%	-29.17%	-67.42%
Max Drawdown (5Y) Largest decline over 5 years	-97.48%	-30.32%	-67.16%
Max Drawdown (10Y) Largest decline over 10 years	—	-30.32%	—
Current Drawdown Current decline from peak	-97.48%	-19.89%	-77.59%
Average Drawdown Average peak-to-trough decline	-49.83%	-13.64%	-36.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	67.25%	5.79%	+61.46%

Volatility

FAT vs. PEP - Volatility Comparison

The current volatility for FAT Brands Inc. (FAT) is 0.00%, while PepsiCo, Inc. (PEP) has a volatility of 6.45%. This indicates that FAT experiences smaller price fluctuations and is considered to be less risky than PEP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAT	PEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.00%	6.45%	-6.45%
Volatility (6M) Calculated over the trailing 6-month period	97.93%	14.91%	+83.02%
Volatility (1Y) Calculated over the trailing 1-year period	97.68%	21.71%	+75.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	66.34%	18.38%	+47.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	77.28%	19.66%	+57.62%

Dividends

FAT vs. PEP - Dividend Comparison

FAT has not paid dividends to shareholders, while PEP's dividend yield for the trailing twelve months is around 4.01%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAT FAT Brands Inc.	0.00%	0.00%	10.53%	9.24%	10.92%	4.91%	0.00%	2.64%	7.66%	0.00%	0.00%	0.00%
PEP PepsiCo, Inc.	4.01%	3.92%	3.51%	2.91%	2.50%	2.45%	2.71%	2.77%	3.25%	2.64%	2.83%	2.76%

Financials

FAT vs. PEP - Profitability Comparison

The chart below illustrates the profitability comparison between FAT Brands Inc. and PepsiCo, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

FAT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, FAT Brands Inc. reported a gross profit of 37.49M and revenue of 140.01M. Therefore, the gross margin over that period was 26.8%.

PEP - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, PepsiCo, Inc. reported a gross profit of 10.73B and revenue of 19.44B. Therefore, the gross margin over that period was 55.2%.

FAT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, FAT Brands Inc. reported an operating income of -17.34M and revenue of 140.01M, resulting in an operating margin of -12.4%.

PEP - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, PepsiCo, Inc. reported an operating income of 3.21B and revenue of 19.44B, resulting in an operating margin of 16.5%.

FAT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, FAT Brands Inc. reported a net income of -58.22M and revenue of 140.01M, resulting in a net margin of -41.6%.

PEP - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, PepsiCo, Inc. reported a net income of 2.34B and revenue of 19.44B, resulting in a net margin of 12.0%.

Frequently Asked Questions

Can I hold both FAT and PEP in my portfolio?

FAT and PEP have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAT or PEP?

PEP has higher volatility (6.45%) compared to FAT (0.00%). In terms of maximum drawdown, FAT dropped -97.48% vs PEP's -73.92%.

Which has better risk-adjusted returns?

PEP currently has the higher Sharpe Ratio (0.59 vs -0.95), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.