FAT Brands Inc (FAT) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

GuruFocus News

Fri, May 9, 2025, 12:53 AM 4 min read

• Total Revenue: USD142 million, a 6.5% alteration from USD152 cardinal successful the aforesaid play past year.

• System-Wide Sales: USD571.1 million, down 1.8% compared to the erstwhile year's quarter.

• Adjusted EBITDA: USD11.1 million, compared to USD18.2 cardinal successful past year's quarter.

• Same Store Sales (Casual Dining Segment): Increased astir 1.6%.

• New Store Openings: 23 units opened successful Q1, a 37% summation from Q1 2024.

• Round Table Pizza Same Store Sales: 0.6% summation successful the archetypal quarter.

• Digital Sales (Round Table Pizza): Increased 5% sequentially from Q4 to Q1 2025.

• Net Loss Attributable to FAT Brands: USD46 cardinal oregon USD2.73 per diluted share.

• General and Administrative Expense: Increased to USD33 cardinal from USD30 cardinal successful the anterior twelvemonth quarter.

• Cost of Restaurant and Factory Revenues: Decreased to USD96.1 cardinal from USD99.1 cardinal successful the anterior twelvemonth quarter.

• Advertising Expense: Decreased to USD11.1 cardinal from USD12.6 cardinal successful the anterior twelvemonth period.

• Total Other Expense (Net): USD36 million, compared to USD33.4 cardinal successful past year's quarter.

• Warning! GuruFocus has detected 8 Warning Signs with FAT.

Release Date: May 08, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• FAT Brands Inc (NASDAQ:FAT) has a robust improvement pipeline with commitments for implicit 1,000 caller locations, indicating beardown aboriginal maturation potential.

• The institution successfully opened 23 caller units successful Q1 2025, a 37% summation from Q1 2024, showcasing effectual enlargement efforts.

• Digital income astatine Round Table Pizza accrued by 5% sequentially from Q4 2024 to Q1 2025, reflecting beardown integer engagement.

• Co-branding initiatives are progressing well, with palmy launches of co-branded and tri-branded models, enhancing marketplace presence.

• The Georgia accumulation installation is performing well, with USD8.8 cardinal successful first-quarter income and a 35% margin, indicating beardown operational efficiency.

• Total gross for Q1 2025 decreased by 6.5% compared to the aforesaid play past year, reflecting challenges successful maintaining income momentum.

• Net nonaccomplishment attributable to FAT Brands was USD46 million, an summation from the USD38.3 cardinal nonaccomplishment successful the anterior twelvemonth quarter, indicating fiscal strain.

• General and administrative expenses accrued to USD33 cardinal owed to higher nonrecreational fees, impacting wide profitability.

• The institution paused its communal dividend and started accruing the Series B preferred dividend, reflecting fiscal constraints.

• Market volatility has delayed the company's quality to rise equity, impacting plans to trim outstanding debt.