Leading Pizza Chain Continues Texas Expansion LOS ANGELES, July 16, 2025 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., parent company of Round Table Pizza and 17 other restaurant concepts, has announced the opening of a new Round Table Pizza location in San Marcos, TX in partnership with Brame Brands. “Texas has become a significant cornerstone in the expansion of our brand, and the opening of our San Marcos location is a testament to Round Table Pizza’s continued growth strategy,” said D ...

Homemade Ice Cream Franchise Rewards Loyalty Members with Free Ice Cream and More this July LOS ANGELES, July 10, 2025 (GLOBE NEWSWIRE) -- Marble Slab Creamery, FAT Brands’ small-batch ice cream franchise that never fails to dream up imaginative flavor combinations, is making Sundaes in July even sweeter for National Ice Cream Month and Ice Cream Day. Every Sunday, loyalty members will be sprinkled with surprise offers that are valid for seven days and are sure to keep fans cool all month long! While everyo ...

Iconic Burger Chain Celebrates National French Fry Day All Week-Long with Free Fat or Skinny Fries with Online Purchase LOS ANGELES, July 07, 2025 (GLOBE NEWSWIRE) -- Fatburger, the all-American burger chain owned by FAT Brands Inc., is ringing in National French Fry Day with a week-long golden, crispy and perfectly salted deal! From July 9 through July 13 at participating locations, fans can get their hands on a free order of Fat or Skinny Fries with any burger or sandwich purchase made online through www. ...

Core Insights - FAT Brands Inc. plans to expand its Fatburger franchise by opening 40 new locations in Florida over the next 10 years, including areas like Jacksonville [1][2] - Whole Factor Inc., an existing franchisee, has successfully developed the Fatburger brand in Florida since 2021, with a previous 14-unit deal in Orlando and Tampa [1][2] - The Riverview and Celebration locations have exceeded expectations, indicating strong demand for Fatburger's offerings [2] Company Overview - FAT Brands is a global franchising company that owns 18 restaurant brands, including Fatburger, and operates over 2,300 units worldwide [3] - Fatburger has a legacy of over 70 years, known for its customizable burgers and a menu that includes various sides and desserts [4] - The brand has a strong fanbase, including celebrities and athletes, and emphasizes a high-quality dining experience [4]

Core Insights - Hurricane Grill & Wings is celebrating its 30th anniversary with a new limited-time summer menu featuring seasonal flavors and special deals [1][3] - The new menu includes a Spicy Peach Wing Sauce, a Wing & Tender Combo Basket priced at $13.99, and a Wings Add-On special for $3.49 [2] - The brand is also introducing new items like Chicken Salad Lettuce Wraps and a Beer Battered Fish Sandwich, along with two specialty cocktails [2] Company Overview - Hurricane Grill & Wings, founded in 1995, is known for its jumbo wings and over 35 signature sauces, with nearly 50 locations across the United States [5] - The company is part of FAT Brands, which owns 18 restaurant brands and operates over 2,300 units globally [4]

Company Expansion - Fazoli's has opened its first international location in Calgary, Canada, marking a significant milestone in its expansion strategy [1] - The company plans to open a total of 25 units across Canada over the next nine years in partnership with Briwin Restaurants Inc. [1][2] Growth and Market Potential - Fazoli's has experienced strong domestic growth for over 35 years and is optimistic about its new global chapter [2] - Briwin Restaurants Inc., the partner for the Canadian expansion, has a successful track record as a multi-unit Fatburger franchisee, indicating strong potential for Fazoli's in the Canadian market [2] Company Overview - Founded in 1988, Fazoli's is the largest QSR Italian chain in America, operating approximately 200 restaurants in 26 states [5] - The chain is known for its quality Italian food offerings, including freshly prepared pasta, sub sandwiches, salads, pizza, and unlimited signature breadsticks [5] Parent Company Information - FAT Brands is a leading global franchising company that owns 18 restaurant brands and operates over 2,300 units worldwide [4] - The company focuses on acquiring, marketing, and developing various dining concepts, including fast casual and quick-service restaurants [4]

Company Overview - FAT Brands Inc. is a leading global franchising company that owns and operates 18 restaurant brands including Round Table Pizza, Fatburger, Johnny Rockets, and Twin Peaks [3] - The company has approximately 2,300 units worldwide, focusing on fast casual, quick-service, casual dining, and polished casual dining concepts [3] Upcoming Event - Andy Wiederhorn, Chairman, and Ken Kuick, Co-CEO and CFO of FAT Brands, will present at Noble Capital Markets' Emerging Growth Virtual Equity Conference on June 5, 2025, at 1:00 PM Eastern Standard Time [1] - Registered, qualified investor attendees will have the opportunity for scheduled 1x1 meetings with the company [1] Event Accessibility - Attendees can register for the live presentation at no cost [2] - A video webcast of the presentation will be available on the company's website and on Channelchek for 90 days following the event [2]

Company Overview - Pretzelmaker, owned by FAT Brands Inc., is known for its innovative Pretzel Bites and has been in operation since 1991, starting as a single pretzel stand [3][6] - The company has grown to over 280 locations worldwide and continues to innovate with various menu offerings [6] New Product Launch - Pretzelmaker has introduced a new menu item, Cheetos Flamin' Hot Pretzel Bites, available until July 13, 2025, following the success of last year's Cheetos Pretzel Bites [2][3] - The new product features a dusting of Cheetos' Flamin' Hot Dust and is freshly baked and hand-rolled daily, providing a spicy flavor that pairs well with the chain's all-natural Lemonade [2][3] Marketing Strategy - The Vice President of Marketing at Pretzelmaker, Katie Thoms, emphasized the company's commitment to customer feedback and the desire to enhance flavor offerings, indicating a strong focus on customer engagement [3] - The collaboration with Cheetos aims to maintain excitement and attract customers through innovative flavor combinations [3] Parent Company Information - FAT Brands is a global franchising company that owns 18 restaurant brands and operates over 2,300 units worldwide, indicating a robust presence in the fast-casual dining sector [5] - The company strategically acquires and develops various dining concepts, showcasing its diverse portfolio [5]

PART I. FINANCIAL INFORMATION (Unaudited) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2025 reflect decreased revenue, a wider net loss, and an increased stockholders' deficit, influenced by the Twin Hospitality Group spin-off and legal challenges [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, total assets decreased to **$1.27 billion**, total liabilities increased to **$1.77 billion**, and the stockholders' deficit widened to **$499.5 million**, with **negative working capital of $233.5 million** Condensed Consolidated Balance Sheet Data (in thousands USD) | Account | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,273,539** | **$1,289,178** | | Cash | $12,150 | $23,383 | | Goodwill | $285,337 | $285,337 | | Other intangible assets, net | $591,783 | $595,689 | | **Total Liabilities** | **$1,773,035** | **$1,744,890** | | Total current liabilities | $316,594 | $298,316 | | Long-term debt, net | $1,216,805 | $1,208,997 | | **Total stockholders' deficit** | **($499,496)** | **($455,712)** | - The company reported **negative working capital of $233.5 million** as of March 30, 2025, including **$91.8 million** in redeemable preferred stock classified as a current liability[27](index=27&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue decreased to **$142.0 million**, loss from operations widened to **$8.6 million**, and net loss attributable to FAT Brands Inc. increased to **$46.0 million**, or **$2.73 per share** Condensed Consolidated Statements of Operations (in thousands USD, except per share data) | Metric | Thirteen Weeks Ended March 30, 2025 | Thirteen Weeks Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $142,019 | $151,967 | | Loss from operations | ($8,566) | ($1,382) | | Net loss attributable to FAT Brands Inc. | ($45,969) | ($38,316) | | Basic and diluted loss per common share | ($2.73) | ($2.37) | - No cash dividends were declared per common share in Q1 2025, compared to **$0.14** in Q1 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Deficit) The total stockholders' deficit increased from **$455.7 million** to **$499.5 million** in Q1 2025, primarily driven by a **$46.3 million** net loss, partially offset by stock issuances and share-based compensation - The **net loss of $46.0 million** was the main contributor to the increase in the accumulated deficit during Q1 2025[16](index=16&type=chunk) - The spin-off of Twin Hospitality Group Inc. created a **non-controlling interest of $5.6 million** on the balance sheet[16](index=16&type=chunk)[121](index=121&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities improved to **$13.2 million** outflow, while net cash from financing activities decreased to **$5.2 million**, resulting in an **$8.0 million** decrease in cash and restricted cash to **$59.3 million** Consolidated Cash Flow Summary (in thousands USD) | Cash Flow Activity | Thirteen Weeks Ended March 30, 2025 | Thirteen Weeks Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($13,217) | ($28,401) | | Net cash used in investing activities | ($24) | ($8,046) | | Net cash provided by financing activities | $5,193 | $40,376 | | **Net (decrease) increase in cash** | **($8,048)** | **$3,929** | | **Cash and restricted cash at end of period** | **$59,341** | **$95,832** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail liquidity risks from net losses and negative working capital, a complex **$1.26 billion** debt structure, significant redeemable preferred stock liabilities, ongoing government investigations and lawsuits, and the recent spin-off of Twin Hospitality Group Inc - The company has a history of net losses, an **accumulated deficit of $499.5 million**, and **negative working capital of $233.5 million** as of March 30, 2025, though management expects sufficient liquidity for the next twelve months[27](index=27&type=chunk) Total Debt Summary (in millions USD) | Debt Category | Face Value | Book Value | | :--- | :--- | :--- | | Total Securitized Debt | $1,278.2 | $1,250.8 | | Other Debt | $14.5 | $14.5 | | **Total Debt** | **$1,292.7** | **$1,265.3** | - Significant liabilities from redeemable preferred stock, totaling **$91.8 million** as of March 30, 2025, stem from GFG and Twin Peaks acquisitions, subject to put options and accruing interest[87](index=87&type=chunk)[93](index=93&type=chunk)[27](index=27&type=chunk) - The company and its former CEO face ongoing DOJ and SEC investigations regarding transactions, compensation, and loans, with the DOJ indicting the company in May 2024, alongside multiple derivative and class action lawsuits[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - On January 29, 2025, the company completed the spin-off of Twin Hospitality Group Inc., retaining approximately **98.6%** voting power and continuing to consolidate its financial statements[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **6.5%** Q1 2025 revenue decrease to planned restaurant closures and notes a **10.1%** rise in G&A expenses due to litigation, while expressing confidence in liquidity for the next twelve months despite negative operating cash flow - Total revenue decreased by **$9.9 million (6.5%)** in Q1 2025, primarily due to reduced restaurant revenue from planned closures for conversions[131](index=131&type=chunk) - General and administrative expenses increased by **$3.0 million (10.1%)** in Q1 2025, mainly due to higher professional fees for pending litigation[133](index=133&type=chunk) - Net cash used in operating activities improved to **$13.2 million** in Q1 2025 from **$28.4 million** in Q1 2024, primarily due to working capital changes[147](index=147&type=chunk) - Management expresses confidence in meeting liquidity needs for the next twelve months via cash on hand, operational cash flow, and capital market access, despite **$91.8 million** in liabilities from exercised Series B Preferred Stock put options[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This disclosure is not required for the current filing - Disclosure for this item is not required[153](index=153&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded the company's Disclosure Controls and Procedures were effective as of the end of the reporting period[154](index=154&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[155](index=155&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the condensed consolidated financial statements for details on material pending legal proceedings - The report refers to Note 13, Commitments and Contingencies, in the financial statements for a description of material pending legal proceedings[157](index=157&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K filed on February 28, 2025 - No material changes in risk factors have occurred from those discussed in the Annual Report on Form 10-K filed on February 28, 2025[158](index=158&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[159](index=159&type=chunk) [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None reported[160](index=160&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[161](index=161&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the fiscal quarter ended March 30, 2025[162](index=162&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements for the Twin Hospitality Group Inc. spin-off, a securitization amendment, and officer certifications - Key exhibits filed include agreements for the Twin Hospitality spin-off, an amendment to the Fazoli's/Native Securitization, and required officer certifications under the Sarbanes-Oxley Act[164](index=164&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $142 million, reflecting a 6.5% decrease from $152 million in the same period last year [12][30] - Adjusted EBITDA was $11.1 million compared to $18.2 million in the prior year quarter [13][32] - Net loss attributable to FAT Brands was $46 million or $2.73 per diluted share, compared to a net loss of $38.3 million or $2.37 per share in the prior year [31] Business Line Data and Key Metrics Changes - System-wide sales were $571.1 million, down 1.8% compared to the previous year's quarter [13] - The Casual Dining segment saw same-store sales increase approximately 1.6%, driven by Buffalo's Cafe and Ponderosa and Bonanza locations [14] - Factory revenue decreased by about 7%, attributed to lower same-store sales and the absence of Smoky Bones locations [54] Market Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales for the quarter, although there was an encouraging rebound in international locations towards the end of Q1 [13] - Digital sales at Roundtable Pizza increased by 5% sequentially from Q4 2024 to Q1 2025 [16] Company Strategy and Development Direction - The company is focused on expanding its brand presence with commitments for over 1,000 new locations already in the pipeline [14] - A strategic move involved spinning off Twin Hospitality Group Inc, which is now listed separately on Nasdaq [7] - The company aims to enhance production capabilities at its Georgia facility, particularly in cookie dough and dry mix manufacturing [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is mixed, with consumers being apprehensive and focused on value [40][41] - The company is committed to debt reduction and leveraging its robust pipeline of growth opportunities [29] - Management expressed confidence in achieving full annual equity target raises over the next twelve months despite current market volatility [10][44] Other Important Information - The company has temporarily paused FAT's common dividend and started accruing the FAT Series B preferred dividend until certain financial thresholds are met [11] - The company is focused on refranchising its Fazoli's locations, which could generate approximately $20 million to $25 million in proceeds for debt reduction [59] Q&A Session Summary Question: Impact of cookie facility utilization increase - Management aims to increase the cookie facility's revenue from $15 million to $25 million annually with improved utilization [34][35] Question: Consumer focus on value - Management noted that consumers are looking for great food and experiences to justify prices, indicating a continued focus on value [40][41] Question: Smoky Bones negative impact on EBITDA - Management estimated a couple million dollars negative impact from Smoky Bones on adjusted EBITDA for the quarter [66][67] Question: Timeline for finding a new CEO - The executive search for a new CEO is progressing well, with expectations to conclude within the quarter [73] Question: Incremental adjusted EBITDA from new stores and factory - Management anticipates achieving the targeted incremental adjusted EBITDA over the next couple of years [77]