FAT Brands Earnings Call Transcripts
Fiscal Year 2026
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The platform has grown to 18 brands through strategic acquisitions and operational synergies, with franchisee confidence reflected in robust unit sales. Co-branding, non-traditional venues, and manufacturing expansion drive growth, while debt restructuring remains a key focus amid stable brand performance.
Fiscal Year 2025
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Q3 revenue declined 2.3% year-over-year to $140M, with adjusted EBITDA at $13.1M and a net loss of $58.2M. Legal matters were resolved, cost reductions implemented, and a $75–$100M equity raise is planned to reduce debt. 80 new store openings are targeted for 2025.
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Q2 revenue declined 3.4% year-over-year to $146.8M, with adjusted EBITDA flat at $15.7M. Legal resolutions and cost-saving initiatives are expected to save $70-75M annually, while a robust development pipeline and strong snack segment performance support long-term growth.
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Q1 2025 revenue fell 6.5% year-over-year to $142M, with adjusted EBITDA down to $11.1M amid lower same-store sales and Smoky Bones closures. Strategic moves included the Twin Hospitality spinoff, refranchising plans, and a focus on debt reduction and cost savings. Over 100 new store openings are targeted for 2025.
Fiscal Year 2024
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Q4 revenue fell 8.4% year-over-year due to a shorter quarter and store closures, but full-year revenue rose 23.4%. The Twin Hospitality spinoff unlocked value and reduced debt, while a robust pipeline supports plans for over 100 new openings in 2025. FAT Brands is focused on organic growth, deleveraging, and optimizing its manufacturing operations.
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Revenue rose 31% year-over-year to $143.4M, driven by acquisitions and new openings, but adjusted EBITDA and net income declined due to underperformance at Smoky Bones and higher costs. Twin Peaks continues to outperform, with strong unit growth and a planned IPO, while refinancing and deleveraging efforts aim for cash flow break-even by end of 2025.
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Revenue rose 42.4% to $152M, driven by acquisitions, but net loss widened to $39.4M due to higher costs and interest. Over 1,100 units are in the pipeline, with a focus on organic growth, M&A, and deleveraging through a potential Twin Peaks/Smokey Bones IPO.